Fred Perry sees profits grow in 2024 despite dip in revenue

British premium brand Fred Perry reported a slight decline in revenue for the financial year to December 31, 2024, as a reduction in discounting and other macroeconomic factors impacted performance.

In a filing with the UK’s Companies House, the label reported a revenue decrease of 3.7 percent compared to the year prior, amounting to 143.6 million pounds. Fred Perry attributed the decline to its wholesale and distribution channels, which contrasted the more steady position held by its owned and operated retail network. Notably, 2023 was also a record year in the way of revenue for the brand.

Profit before taxation rose 5.4 percent to 17.1 million pounds, yet after taxation, this figure declined slightly from 12.7 million pounds to 11.9 million pounds. Gross profit also fell, yet more marginally, dropping from 76.9 million pounds to 75.3 million pounds. The company’s gross margin came to 52.1 percent.

Fred Perry said disruptions in the Red Sea and Suez Canal had significantly increased freight rate volatility, adding to wider pressures among its logistics operations. Despite such issues and added inflationary challenges, however, the company noted that it had retained the retail price of its signature Fred Perry shirt through support from its long-term suppliers and forward contract purchasing.

Overall, 2024 reflected a period in which Fred Perry prioritised the consolidation of its strategy, collections and inventory, after reporting a 40 percent growth in the business between 2020 and 2023. Japan was particularly highlighted as a strong market, with the brand growing in the region by over 30 percent in 2023.

Looking ahead, Fred Perry warned that it was continuing to tackle “another set of uncertain and worrying economic conditions”, such as significant periods of high inflation; the ongoing effect of the Russian invasion of Ukraine; and further geopolitical actions. “Our long-term plan is to remain focused on executing our clearly defined purpose, mission and values,” the report stated.