A UK-based upholstery group, known for brands such as Ashley Manor, Alstons, AMX Design, and Alexander & James, has reported a sharp increase in its third-quarter net loss as it grappled with declining sales and strategic headwinds.
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For the quarter ending September 2024, the group, TCM Living posted a net loss of £2.6 million, double the previous year's figure, with revenue plummeting 38% to £13.3 million. The group attributed the downturn to market challenges and significant shifts in customer supply chain strategies, notably changes in buying practices at retailer ScS, which had previously been flagged in filings.
Year-to-date figures paint a similarly tough picture, with sales down 38%, totaling £50.1 million for January–September 2024, and a cumulative net loss of £6.7 million.
Margin pressures compounded the group's struggles, with gross margins narrowing nearly four percentage points to 15.9%, driven by rising input costs and supply chain disruptions, including the Red Sea container crisis.
The results underscore the impact of retail strategy changes and external pressures on TCM Living's profitability, while the group explores avenues to stabilise its operations amid ongoing market volatility.
Source: www.thefurnishingreport.com