The CEO of Monsoon Accessorize has forecast that the sister brands will return to single-digit or low double-digit EBITDA this year, following a “painful” 12-months.
Speaking to Drapers, Nick Stowe explained that recent struggles were due to rising running costs, an uncompetitive childrenswear range, the cost-of-living crisis, and the collapse of its franchise operations in Italy and Saudi Arabia.
Monsoon had swung to a £2.2mn loss in the year to 31 August 2024, down from EBITDA of £20mn the year before. Sales fell 11.8% to £218.7mn.
“It was a mix of things that all swirled together at the same and caught up with us. We let our kids business go for too long without refreshing it. We didn’t give it its due attention so that caught up with us,” said Stowe.
Moonsoon has recently introduced a new childrenswear direction, with a new buying team and design overseen by womenswear creative director Caroline Jackson. It has also launched its first-ever dedicated children’s boutique in Westfield Stratford.
Then in February this year, Monsoon launched a new travel boutique concept with the opening of two stores in London Gatwick’s North and South Terminals. These boutiques feature a wider selection of women’s beach and resort wear, including exclusive lines for Gatwick, alongside accessories, casual wear, and children’s clothing.
This expansion into travel retail builds upon Monsoon’s small boutique format seen in high street locations such as George Street in Edinburgh and Upper Street in Islington.
With these additions, Monsoon now has 25 stores across the UK and Ireland, comprising 10 boutiques and three travel stores, as well as a ecommerce offering.
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