Paul Smith reports annual turnover increase of 7% to £177.2m

Global fashion brand Paul Smith, which this year celebrates its 50th anniversary, has reported an increase in profits of 7% for 2019, compared to 2018.

According to newly filed accounts, the menswear label which was founded in 1970, revealed gross profit had risen to £91.8 million in the year ending June 2019. The total turnover for the brand increased by 7% to £177.2m, up from £165m in 2018.

Sales have increased across retail and wholesale channels which directors said "reflected the hard work of our staff and partners around the world". Retail sales for the year increased by 5% overall and 4% on a like-for-like basis, which the company said happened despite footfall dropping across most of the stores.

The accounts also indicated that Paul Smith’s pre-tax profits increased marginally from £2.9 million to £3 million over the same period.

The report also touched on the issue to Brexit, adding: "Until any clear direction and timetable is agreed, there is uncertainty about the longer term implications of Brexit for the Group. We have taken all appropriate measures to minimise the impact given the nature of the risk, known factors and likely outcome of each scenario."

It also praised the performance of its London stores “despite a challenging economic climate”, a reference to the retailers struggle with rising rents, business rates, and consumer confidence.

In 2019 Paul Smith also opened new stores in Manchester and Berlin, and acquired four shops in Hong Kong and one in Luxembourg which had been previously operated by franchise partners.