Paul Smith sees turnover increase 22% in latest financial year

Global fashion brand Paul Smith has revealed that group turnover increased by 22% to £197.35 million for the 2022 financial year.

Companies House documents for Paul Smith Group Holdings Limited, the holding company for all of the activities under the Paul Smith umbrella, reveal that following another "period of significant challenge" it has "recovered strongly".

The business also warned that in common with other retailers, it continues to face challenges including the "impact of rising inflation and low consumer confidence".

Gross margin improved as a result of higher volumes, stock efficiencies and more sales at full price as COVID-19 restrictions eased. Operating profit reached £4.01 million, an improvement on its recorded £12.12 million operating loss in 2021.

Retail sales for the year increased by 35% overall and 41% on a like-for-like basis, benefiting from increasing footfall associated with shops being open for the majority of the final year as COVID-19 restrictions were removed.

Retail sales for Autumn/Winter 2021 were up 36% on the previous Autumn/Winter season. Sales in the Spring/Summer 2022 season rose 49% on the previous year.

With all shops now open, direct e-commerce sales during the year represented 34% of sales. The company said it expects e-commerce momentum to "continue based on current trends and continued investment in digital capability and digital marketing activity".

Whole sales to franchise partners, leading department stores and selected multi-brand shops and online retailers throughout the world, increased by 12% to £82.64 million.