Paul Smith revenue jumps to almost £200m amid expansion drive

today Jan 8, 2019
Reading time
access_time 2 minutes
Download the article
Click here to print
Text size
aA+ aA-

Designer brand Paul Smith spent last year investing in new shops and upgrading its e-commerce capabilities, and its effort seem to have paid off, posting increases in both annual revenues and pre-tax profits.

Paul Smith

In the year ended 30 June 2018, new Paul Smith stores opened in Manchester, England and Berlin, Germany, and the brand acquired four shops in Hong Kong and a further one in Luxembourg which had been previously operated by franchise partners.

This helped the company achieve a 12% increase in retail sales, and wholesale sales to franchise partners, department stores and selected multi-brand retailers grew by 2.8% to £76.2m.

The brand’s online site also performed particularly well, up 26% on the previous year, while its license business experienced a 3% decline in income mainly due to a weaker Japanese yen and the termination of a contract in Japan.

In total, the company’s annual revenues are nearing the £200m mark, reaching £197m in the financial year to the end of June. This represents a 6.7% on the previous year.

Meanwhile, pre-tax profits increased by 3% to £3.3m, but profit for the year fell to £1.94m from £2.0m a year earlier.

“Whilst we do not underestimate the challenges in our market, we have made significant progress in returning to growth and building a strong foundation as a result of the significant investment and efforts made. Based on current levels of trade we expect a more positive outcome for the coming year,” said the company after revealing exceptional costs of £2m related to a reorganisation.

Since year end, Paul Smith has opened new stores in Copenhagen, Denmark and Kings Cross, London. There are further openings planned in Munich, Germany and California, US this year.

Copyright © 2019 FashionNetwork.com All rights reserved.