Sunderland outdoor clothing company Berghaus has seen its losses widen after counting the cost of the global supply chain crisis and soaring distribution fees.
The business, which designs and makes outdoor clothing, footwear and accessories, has released financial results for 2021 which show a big jump in sales in both the UK and Europe. Turnover in the UK leapt over 26% to £63.8m, while in Europe the increase was over 42% to £6.3m. Overall, global turnover increased 27% from £55.3m to £70.2m.
However, the firm saw its operating loss grow from £1m to £4.4m on the back of supply chain issues, as well as a major increase in distribution costs. During 2021, Berghaus said it benefited from a strategy that began rolling out during the previous two years, which saw investments in its DACH business in Germany, Austria and Switzerland as well as a refresh of the brand’s overall identity and positioning in all markets. It is also placing a focus on product development in both specialist and outdoor lifestyle categories.
