Matches reports £33m loss in FY22

Matches, the modern luxury shopping destination, has posted an adjusted EBITDA loss of £33.7m for FY22. 

For the year ended 31 January, revenues slightly slipped to £380.1m, compared to £386.6m in FY21. However, order demand came at £758.2m, up 12% to £677.1m reported the previous year. 

Matches has also updated its FY23 trading performance and now expects to deliver £10m of operational cost savings which “will result in a material  improvement in the losses incurred by the company”.

The fashion destination has secured £20m of additional capital in June 2023 to support its growth plan, which was part  of the previously announced £60m investment from owner Apax Partners. 

For the months ahead, the company said it is “now confident” in the financial and operational progress and expects to drive a further material reduction in losses and fixed costs supporting a return to profitability. 

Nick Beighton, who was appointed as CEO in August 2022, said: “The challenging FY22 performance demonstrates why the company has launched a comprehensive turnaround  plan and is taking decisive action to strengthen its foundations in order to build a platform from which we can deliver future profitable growth. 

“Following the new management team’s arrival in H2 FY22, we immediately  started implementing important turnaround measures to refine our edit and brand offer, significantly reduce fixed  costs and refocus our partnership network, which should begin to bear fruit in FY23 and beyond.”

He added: “Pleasingly, in FY23, and despite the market backdrop, we have started to deliver green shoots of progress. We have grown our loyal customer base in our core markets in the UK and US, and substantially reduced costs, significantly improving underlying profitability. 

“As we enter the peak trading period in the lead-up to Christmas, we are in  good shape, with appropriate stock levels, and able to offer our customers same-day and next-day delivery options throughout the festive period.”