Fishing Republic closed five stores in first half of 2018
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One of the UK’s top fishing tackle retailers closed five underperforming stores in the first half of this year.
At last week’s Annual General Meeting (AGM) Statement, Fishing Republic told investors that significant changes have been as part of its turnaround plans designed to stabilise the business and improve its performance, including the store closures, overhead cost reductions, as well as organisational and system improvements and the launch of an enhanced website in the middle of May.
Reflecting a difficult trading environment, it added that revenues in the first half of 2018 are expected to be around £3.4 million compared to £4.1 million in the first six months of 2017. Overall store sales will be approximately £2.7 million (2017: £3.2m) and like -for-like store sales down 22% compared to an increase of 21% in 2017, although the second half is showing an improving trend.
Online sales decreased to approximately £0.7 million (2017: £0.9m).
The report said: “Margins in the first quarter were below the company’s expectations, mainly as a result of clearing old product lines. However, despite continuing competitive pressures, the second quarter margins have improved and are close to those achieved in the same period last year. Inventories at the half year end stood at approximately £3.2 million compared to £3.3 million in December 2017 and £5.3 million in June 2017.
“The Board has made good progress in recruiting a new CEO and a further announcement will be made in due course.”