Missguided has returned to pre-tax profitability following a dire year of trading, despite seeing sales decline.
For the year to March 31 2019 the online fashion brand reported an EBITDA of £3.5 million, a triumphant return to the black after posting a £26.3 million loss a year earlier.
After tax Missguided still posted a loss of £4.7 million, thought this was again a significant improvement on the £46.7 million loss reported a year earlier.
Despite this, Missguided said it still had “much to do on our journey back to growth”, and saw revenues drop from £216 million last year to £187 million.
It attributed the fall in sales to a “lack of marketing investment” leading to “reduced brand awareness”.
Missguided, which became the first pureplay online retailer of its kind to launch a bricks-and-mortar store in 2016, said that it was forced to shut its debut store in Westfield Stratford City during the year as it was unable to make it profitable.
Though it is still temporarily trading in its second UK store in Bluewater, the departure from its store leases meant it has written off a £16.85 million loan.
Looking ahead Missguided said it was confident it would return to full profitability in the next financial year.