Turnover nears £200m for Paul Smith

Turnover at global lifestyle brand Paul Smith jumped closer to the £200m mark during its latest financial year, newly filed accounts have confirmed.

The Nottingham-headquartered company, which was founded in 1970, achieved a turnover of £197.2m for the year to 30 June 2018, up from £184.8m in the prior 12 months.

The accounts for Paul Smith Group Holdings also confirm the company's pre-tax profits increased from £2.9m to £3m over the same period.

Paul Smith, which employs more than 1,000 people, opened new shops in Manchester and Berlin.

Since its financial year end, forward orders for spring summer 2018 were up 5 per cent and the company acquired a shop that was previously operated by a franchise partner in Luxembourg.

Retail sales increased 12 per cent overall and 11 per cent on a like-for-like basis and it also acquired four shops in Hong Kong and one in Luxembourg. In August 2018, Paul Smith opened a new shop in Copenhagen.

The business also opened new stores in Kings Cross, London and is planning to launch in Munich and California.

Retail sales in the spring and summer of 2018 rose 11 per cent overall and 9 per cent on a like-for-like basis.

Online sales also increased by 26 per cent and direct e-commerce sales now represent 23 per cent of its retail sales, up from 18 per cent.

Wholesale sales to franchise partners, department stores and multi-brand shops and online retailers throughout the world increased by 2.8 per cent to £76.2m.

Forward orders for spring and summer 2019 on a like-for-like basis have also risen 8 per cent, the company confirmed.

A statement signed off by the board said: "The directors consider the result for the year to be satisfactory following a period of challenge, transition and significant change.

"Sales increased across our retail and wholesale channels and we are pleased to see the positive results following the changes made to our business and products.

"Our increasing overheads reflect continued investment in new shops and our business systems as well as the impact of a weaker pound on our purchases and the cost of our operating overseas.

"Operating expenses also include the significant impairment of one of our own non-performing shops and the significant challenges to the high street have led to an unusually high bad debt charge this year.

"Whilst we do not under estimate 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."

This article was written by Jon Robinson, Senior Digital Staff Writer at Insider Media Limited - Click to read the full article

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