Restructuring at Daily Paper and departure from US store

Daily Paper is taking measures to ensure profitability and as a result is moving away from its New York flagship.

The Dutch streetwear brand expects a decline in sales in the coming years and is therefore addressing costs, according to its recently published annual report. The annual report for the 2023/2024 financial year shows a slight increase in profits, but also a slight decrease in sales. Sales in the financial year amounted to a good 14 million euros.

However, Daily Paper warns that these results do not meet the “financial metrics required for the agreement with the bank.” At the time of filing the annual report – December 23, 2024 – the company is in discussions with the bank regarding an exemption. “There is uncertainty that may materially impact the Company’s ability to continue as a going concern,” the report said.

Daily Paper is determined in the report and says it is taking “robust steps” to save costs. The company expects sales to continue to decline due to a global decline in fashion and retail. Daily Paper is therefore talking about a restructuring of the team at the company headquarters. “This has led to a reduction in staff. This had a positive impact on costs.” The company also states that all e-commerce sales are processed through the European distribution center, which is intended to reduce various costs.

Another notable piece of information from the annual report is the divestiture of the New York business. This is scheduled to be completed at the beginning of 2025. The New York store was the brand’s first overseas store and opened in 2020.

All in all, the company’s cash flow is expected to improve. The brand emphasizes that it has a “healthy gross margin” and that the measures taken are intended to improve net margins and stabilize liquidity risk.