Kantox solutions for a clothing & homeware company
The company is a listed UK retailer with international sales and purchases. FX is managed centrally, with a range of hedging programmes run manually to cover risk across its various business lines. The company was looking to improve the quality of its exposure data and the precision of its hedging while removing time-consuming manual processes.
- The reliance on manual processes meant that real-time purchase data was not updated in forecasts. As a result, hedging was undertaken based on outdated information.
- The complexities involved in gathering exposure data and continuously monitoring currency markets made it challenging to take advantage of positive market movements in a systematic, unbiased way.
- Traditional forecast hedging necessitated significant unwinding throughout the year, with a heavy P&L impact.