Paul Smith posts strong business recovery over pre-pandemic period

British fashion label Paul Smith's turnover increased by 7.7 percent to 212.5 million pounds for the year to June 30, 2023.

In a filing on Companies House, the company said sales increased across all retail channels including e-commerce, retail, wholesale and licensing.

Operating profit for the year reached 4.1 million pounds, up 3.2 percent, while gross profit increased to 112.5 million pounds. The company’s pre-tax loss narrowed to 2.3 million pounds but net loss widened to 4.1 million pounds for the financial year under review.

Retail sales for the year increased by 12.8 percent overall and 12.5 percent on a like-for-like basis, driven by a gradual increase in footfall, travel and commuting since the pandemic.

Retail sales for the AW22 season were up 8.2 percent and 7.3 percent on a like for like basis. The sales rose 6.3 percent like for like compared to the pre-pandemic autumn season. Retail sales for SS23 rose 8.9 percent overall and 11.6 percent like for like, and increased 16.6 percent compared to the pre-pandemic season.

With all shops now reopened, direct e-commerce sales during the year represented 31 percent of Paul Smith’s retail sales. Wholesale sales to franchise partners, leading department stores and selected multi-brand shops increased by 4.2 percent to 86.1 million pounds.

The company’s licensing income was up by 0.9 percent to 15.8 million pounds boosted by a "successful launch" with a new eyewear partner.