The fashion chain New Yorker was able to almost double its profit despite the outbreak of the pandemic.
Consolidated net income rose to 339 million euros in 2021, according to a statement published in the Federal Gazette in mid-April. In the previous year, the profit was still 173 million euros.
According to the annual report, New Yorker “far exceeded” its expectations for the year after the outbreak of the pandemic, not only in terms of earnings but also in terms of sales. Revenue climbed 19 percent to 2.03 billion euros in 2021, compared to 1.7 billion euros in the previous year.
Sales will continue to grow in 2022
New Yorker expects sales to grow slightly in 2022 due to the consequences of the pandemic and the Russian attack on Ukraine. According to the balance sheet, the Braunschweig-based fashion group sees itself in a good market position to counteract the negative external influences.
However, the fashion retailer is more cautious when forecasting its margins and earnings. The trading margin could be expected to decline slightly. Two years ago, this could be increased to 61.6 percent from 57.7 percent in the previous year “despite the difficult market conditions” through active merchandise management.
The New Yorker also anticipates a decline in pre-tax yield and declining pre-tax earnings in 2022. According to the business figures for 2021, the clothing company still generated earnings before taxes of 506 million euros, compared to 255 million euros in the previous year. The pre-tax return was at a high level of 24.9 percent. In the previous year, this amounted to 14.8 million euros
More branches
Despite the difficult market environment, the number of branches should also be expanded in 2022, said the fashion group.
At the end of 2021, 1,150 stores were operated in 46 countries. Despite the difficult conditions during the pandemic, the number of stores rose by a net 33 because, as in previous years, individual locations were deliberately closed. New Yorker employed an average of 20,085 people in 2021, up from 18,776 the year before.