Clarks to cut jobs as it swings to loss

The affected staff are believed to be spread across Clarks’ global offices, including its headquarters in Somerset, UK, and its Americas base in Massachusetts. The company also has offices in Shanghai, Tokyo, Singapore and Paris.

The latest job cuts came after the company made 103 roles redundant in 2023 to “protect the progress the group has made over the last couple of years”, on improving trading performance, Clarks said in its latest financial results.

In the year to 31 December 2023, the retailer reported an operating loss of £20.3m, compared with a £54.5m profit in the previous year, while turnover was up 1.4% to £994.5m.

Loss before tax stood at £39.8m, compared with a profit of £35.9m. The loss included one-off costs of £52.8m with store impairment charge totalling £41.6m.

The company attributed the underperformance to weak demand in full-price channels, wholesale partners being overstocked, a promotional marketplace and inflationary pressure of product costs.

It said in a statement: “A combination of the above factors has resulted in loss after tax performance short of target expectations and last year’s levels. The business and trading environment at the close of 2023 is one of ongoing uncertainty and relative pessimism, especially in the Western hemisphere.”

Net cash position totalled £20.4m, down from £52.1m on 31 December 2022.

Last month, Drapers revealed that Clarks’ UK and Ireland managing director Bob Neville and chief product officer Victoria Jones left the company following the departure of CEO Jonathan Ram in April.

Clarks chairman Colin Li and other directors have since formed an interim executive committee to lead the company.

Hong Kong-based Viva Goods, controlled by Chinese businessman Li Ning, has been a majority shareholder of Clarks since 2021 while the Clark family retains a minority stake.

Clarks declined to comment on the latest job cuts.