海角视频 streetwear retailer END Clothing saw operating profits plummet by almost 拢30m last year as it battled a number of challenges, including teething issues with a new stock system.

The North Tyneside business, launched by university friends Christiaan Ashworth and John Parker in 2005, has grown to operate six stores including two flagship shops in Newcastle city centre. The founders sold END to The Carlyle Group in 2021 and now act as consultants for the company, which is known for its rare trainers and high-end fashion brands.

The company behind the brand, Ashworth and Parker, has now filed accounts covering the year ended March 31, showing a rise in turnover from 拢219m to 拢221.1m. Over the same period, operating profit fell from 拢38m to 拢8.8m, while Ebitda dropped from 拢40.6m to 拢13m.

Within the accounts, directors said the company invested in its operations, platform and selling channels to support its strategic global growth plans, opening new stores in both Manchester and Newcastle, including its first womenswear only store on Tyneside.

But it said that a new stock system implemented mid-year 鈥減resented challenges to the business, with adverse effects on both our operations and our customers鈥 ordering experience鈥. It told how it took action to reduce marketing and promotional activities to slow website traffic and added fulfilment staff until the operations recovered.

The accounts say: 鈥淎s a result, trading was adversely affected over several months, additional costs were incurred to ensure consistency of delivery to the end customer, and the company took a significant write off of stock as a result of stock missing the optimum sales window. The one-off costs associated with the implementation have been considered as exceptional items in the year.鈥

END said it was also impacted by the withdrawal of franchises from key brands. It was reimbursed for any residual stock for the franchises and said it is working with key suppliers to 鈥渋ntroduce new exciting brands and products during 2023 to make up for any loss鈥.

Despite the challenges, the company said it recovered well in the final quarter of the year, and following the year end announced its launch overseas, with the opening of a store in Milan, a move it said lays a solid foundation for future international growth.

It added that it has also continued to invest in its technology and digital platforms, adding how it has launched a new VIP clienteling programme, designed for high-value customers.

END employed 927 staff in the year, up from 764, but following the year end, in May 2023, the company announced the consolidation of its two Newcastle facilities to 鈥渃ontinue to drive efficiency of operations and support future growth initiatives鈥.

It said this resulted in a number of redundancies but that the company will seek to redeploy staff in vacant roles where possible to reduce the number of employees impacted.

No dividends have been paid or recommended in the financial year.