What happened: Mountain Equipment Co-op posts $11.5m annual loss
Why it matters: The new CEO took over a few months after a tough 2018-19 fiscal year
Soft sales and increasing costs helped losses climb over the past fiscal year at Mountain Equipment Co-op.
Financial results from the iconic outdoor lifestyle retailer reveal MEC lost $11.5 million in the fiscal year ending February 24.
Sales totalled $462.4 million.
A year earlier the company posted net earnings of $11.7 million on sales of $454.8 million.
Former CEO David Labistour stated the company had restructured its product, operations, communications and marketing, and supply chain teams "to be more integrated and responsive."
He said the significant cost of this undertaking was reflected in the financial results.
“We need to invest and grow to ensure we have the tools and profile to compete. I believe these investments, burgeoning e-commerce operation and sustainable brand direction have set us on the right path for the future,” MEC board chairwoman Ellen Pekeles said in a statement posted to the company’s website.
Former Best Buy Canada CFO Philippe Arrata took over from Labistour in June, months after the close of the latest fiscal year.
Prior to taking the top job, Arrata served on MEC’s board from 2015-18.