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Vivienne Westwood costs cutting strategy post Brexit

British top fashion's and most contradictory designers, Vivienne West wood reported a sales, for the year up December 31, 2016, increased 11 per cent, but margins were under pressure following challenges in the retail market and adding to its woes was the weak pound post Brexit. During the period, the company saw a 37 per cent increase in wholesale sales and a 5.3 per cent rise in retail sales, boosting its full-year turnover to £37.5 million, as against a turnover of £33.7 million during a year ago period.

Despite these setbacks, the brand “continues to remain attractive to its wider customer base as sales growth demonstrates,” however, the company suffered a dramatic drop in pre-tax profit which fell to £1.9 million when compared to £2.3 million in 2016. Westwood says drop in profitability was due to a 19 per cent increase in cost of sales due in part to the weak pound post the EU referendum. The brand is now focussing on alleviating these constraints by reviewing pricing and working steadfastly towards cost cutting. The brand is also working on a strategic review of the business targeted at creating a new operating structure. These measures it disclosed will allow it to optimise processes and overall efficiency of the business.