Hamleys remains 'confident' after swinging to £12m loss
The boss of Hamleys has insisted that the toy emporium is on track to return to profitability even though the company reported a £12m loss last year.
Dropping from a profit of £2.6m in 2016, the toy store blamed Brexit, macroeconomic factors, terrorism and “a general erosion in UK consumer confidence” for the swing and recorded a 2.5% decrease in revenues to £66.3m.
The company also said that the UK retail environment in 2017 was "difficult", with higher costs, rents and rates, and adverse foreign exchange rates all damaging business.
Chief executive Ralph Cunningham said: “Our results for 2017 reflect these market pressures and the one-off impacts of the fundamental strategic review of the business undertaken by our new management team in the fourth quarter of 2017.”
The year saw the closure of six Hamleys stores four franchises, leaving it with 100 franchise units and 29 stores, with the brand leaving the Swedish, Danish and Norwegian markets.
However, Cunningham said efforts to reduce costs and invest in international franchise stores had catalysed a significant improvement in in profitability during the current financial year.
"Despite the continuing challenges to the UK market, we are confident that the actions that we have taken will lead to sustained improvements to profitability and like-for-like sales in 2018," said a statement from company.
Hamley’s is the world’s oldest currently operating toy retailer having been founded in 1760 by William Hamley, who opened a store in High Holborn, London.