Fenwick has swung to a loss amid a “challenging retail environment” as high inflation weighed on sales and costs.
The department store chain posted a loss before tax of £28.4m in the year to 26 January, compared to a profit of £57.1m the year prior.
It comes as sales slipped 7% to £184.2m, down from £199.7m.
Fenwick citied a “challenging backdrop to sales” as it blamed high mortgage rates and inflation on “contributing further to the ongoing effects of the cost-of-living crisis”.
“In the last quarter sales were further impacted by heavy discounting by competitors. This has impacted the company’s ability to limit discounting and contain costs relative to sales,” it said.
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The retailer, which has eight department stores across the UK, said the group was focused on returning to profitability.
“Steps will continue to be taken to improve the operating model, especially with regards to an ever more efficient online operating model and there will be a strong focus on improving the revenue growth and profitability of our online and bricks and mortar offering.
“This will be achieved through a focus on retail basis, delivering differentiated customer service and preserving margin on products offered and building upon the strong position it has in the local markets within which it trades.”
Fenwick unveiled its newly revamped and upsized beauty hall at its Newcastle flagship last week, with the 26,000 sq ft space featuring 163 brands and a 50-ft long fragrance bar.
While at the start of the month, the retailer made headlines as it was revealed its incoming chief executive Nigel Blow would no longer be taking up the position.
The former Harrods executive claimed Fenwick blocked him from taking up the role two weeks before he was due to start following following multiple sexual assault and rape allegations made against Harrods’ previous owner Mohamed Al Fayed.
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