Boodles is expecting a 30% drop in sales for the year to the end of February 2021, the company reports in its final accounts for the previous financial year.
Costs for the most recent financial year were trimmed by 40%, Boodles director Michael Wainwright reports, so he still expects the company to report “decent profit” for the year.
Covid hit almost immediately after another successful year for Boodles, with sales for the 2019-20 financial year (ending February 28, 2020) topping £74 million.
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Sales were down slightly from £77.1 million the prior year and operating profit dropped from £11 million to £7.2 million.
Entering the pandemic year, Boodles was well placed with a net £64.4 million on its balance sheet.
“Since the [2019-20 financial] year end, the company has been forced to close its doors for around four months on and off due to the covid-19 pandemic,” Mr Wainwright describes.
“However, sales have proved extremely resilient due to the customer relationships Boodles has built up over many years and the brand it has created. Expenses for the period are also much lower. The year ending February 28 2021 should still show a good profit with a very strong liquidity position,” he concludes.