End. swings to loss in 2024 as it undergoes restructuring

The holding company of End., Ashworth & Parker, has posted the results of the British streetwear retailer’s financial year ended 31 March 2024. During this time, the company said that the retail landscape had “remained challenging as macroeconomic pressures persisted both in the UK and abroad”.

It could be this that caused the company to slip into the red during 2024. According to the filing in the UK’s Companies House, End. fell from an operating profit of 8.8 million pounds in 2023, to a loss of 43.6 million pounds.

End. said that it had taken steps to reduce inventory intake, a process that ultimately led to a further reduction in revenue of 3.8 percent to 212.7 million pounds, down from 2023’s 221.1 million pounds. Despite this, the company said it had “significantly improved” its inventory position from 92.7 million to 62 million pounds.

Underlying gross margin also took a hit. While in the year prior, its margin came to 35.1 percent, for 2024 it fell to 28.3 percent, a drop caused by a “slowdown in market demand” and “extensive levels of discounting”. Its pre-exceptional EBITDA, however, was positive, amounting to six million pounds, down from the prior 28.2 million pounds.

During the reported period, End. underwent a company-wide restructuring, taking its warehouse facilities under one roof, in place of two, and reducing its store offerings in Newcastle to just one location. This fell alongside the aforementioned review of its inventory, which it said strengthened its merchandising capability. All of this combined contributed to a negative overarching EBITDA of 16 million pounds, down from a positive 12.9 million pounds in 2023.

Into the rest of the 2024 and coming into 2025, End. has made a number of steps to adjust its leadership team and expand its collaboration projects. This all came as End., its subsidiaries and its parent company, Lobster Bidco Limited, were snapped up in an acquisition by Apollo Global Management, a move that reduced its debt and interest burden.

The report concluded: “End. operates in what remains an intensely competitive industry but continues to invest in the right capabilities to drive future growth, supported by long-term strategies with key brand partners and a continual desire to improve and streamline operations.”