Clarks, the historic British footwear retailer, has announced the loss of over 1,200 jobs following a sharp decline in annual revenue.
The company, founded more than 200 years ago, saw its sales fall from £994.5 million in 2023 to £901.3 million, marking a drop of nearly £100 million.
Newly filed financial documents confirm that Clarks reported pre-tax losses of £39.2 million in the latest financial year, marking its second consecutive year in the red. The company had last recorded a pre-tax profit of £35.9 million in 2022.
In addition to financial losses, the company also underwent a significant workforce reduction. Employee numbers fell from 7,413 to 6,161 over the same 12-month period, reflecting a year of restructuring and cost-cutting.
Clarks attributed its disappointing performance to ongoing global challenges and weak consumer demand.
The company cited widespread political uncertainty across key markets, including the United Kingdom, the United States, the European Union, India, and others, as a contributing factor. A high volume of major elections and continued economic instability influenced consumer confidence, investment patterns and retail spending throughout 2024.
The impact of international conflicts, inflationary pressures, and global supply chain disruption further weakened economic conditions, ultimately affecting retail demand across many sectors, including footwear.
Clarks also noted a £32.1 million decline in the value of store assets and equipment, further weighing on its bottom line.
The retailer is still being led by an interim executive committee more than a year after the departure of former CEO Jon Ram, who stepped down after a two-year tenure.
In its corporate statement, Clarks described the past financial year as one of transition, during which the business implemented strategic cost reductions and restructured operations to align with its current scale. The company is also shifting its focus towards a new marketing strategy and product repositioning to prepare for a return to profitability in 2025.
Despite these setbacks, Clarks remains committed to long-term recovery and growth, aiming to rebuild financial stability through streamlined operations and a refocused brand strategy.
