Go Outdoors, which is owned by FTSE 100 giant JD Sports, has slumped into the red thanks to a “disproportionate” rise in costs.
The business, which also operates the Go Outdoors Express, Taylor’s and Fishing Republic brands, has reported a pre-tax loss of £1.4m for the year to 3 February, 2024.
The loss comes after the firm posted a pre-tax profit of £13m for the prior 12 months.
Newly-filed accounts with Companies House also show that turnover at the Greater Manchester-headquartered brand rose from £338.2m to £344.7m over the period.
Go Outdoors said its turnover increased by two per cent because of the additional 53rd week in the financial year and a rise in retail space across its stores estate.
During the year, the average number of people employed by Go Outdoors fell from 2,534 to 2,382.
Higher costs offset rise in sales at Go Outdoors
A statement signed off by the board said: “During the period, the company has seen a contraction of the online market which, although above pre-pandemic levels, has partially offset the strong sales performance within bricks and mortar stores.”
Go Outdoors added: “Directors are pleased with the sales performance of the company during the year but recognise more work needs to be done on lowering its cost base and improving its profitability.”
It also said: “Although sales and margins improved, costs have also increased disproportionately compared to the previous period due to increased staffing and distribution costs, reflecting National Living Wage changes and increased activity.”
JD Sports has owned Go Outdoors after buying it for £56.5m in 2020 after pushing the brand into administration.
The results for Go Outdoors come after JD Sports itself reported a record revenue for the first half of its financial year after a pick-up in sales and the acquisition of American retailer Hibbett.
Revenue at the retailer reached just over £5bn in the 26 weeks to 3 August, 2024, up by 5.2 per cent year on year.
Its pre-tax profit also rose by two per cent to £405m, while earnings per share rose 4.5 per cent to 5.15p.
