SCOTTISH fashion retailer Mackays Stores returned to profit last year despite sales falling by more than 6 per cent after it closed a number of unprofitable outlets.
The company, which trades as M&Co across 260 stores and a growing online operation, made a pre-tax profit of £2 million in the year to 21 February compared with a £2.3m loss the year before. Turnover of £158m was down by £10m on the previous year’s figure.
Chairman Iain McGeoch said the fall in turnover was down to the closure of 19 unprofitable stores along with a strategy of lower stock buying which led to reduced sales of marked down product.
He said the result was a significantly better profit margin and the current financial year had seen a further improvement in performance.
The company’s online operations sells clothes in more than 80 countries and it operates 19 international franchise stores in nine countries with new units opening in Bulgaria, Greece and the UAE.
“We have continued to make significant progress in transforming M&Co into a ‘best in class’ international fashion retailer in line with our strategy introduced 12 months ago,” said McGeoch.