Fashion label Paul Smith marks start of 50th anniversary year with 'pleasing' surge in sales

Majority shareholder Sir Paul Smith
John Phillips/John Phillips/Getty Images

Fashion label Paul Smith marked the start of its 50th anniversary year by reporting a “pleasing” surge in sales and profits.

The company, founded by the godfather of British style Sir Paul Smith in Nottingham in 1970, said its sales rose 8.9 per cent to £214.9 million in the year to the end of June, while pre-tax profits were 76 per cent higher at £5.35 million.

The label, which has been worn by stars ranging from Tom Cruise to singer Paul Weller and model Rosie Huntington-White, said sales have continued to grow since the financial year end.

Sales for the ‘Spring Summer 2019 season were six per cent higher than the previous on a like for like basis. Wholesale forward orders for the Spring Summer 2020 collections are up 10 per cent on last year.

The company, known for its signature multi-coloured stripe motif, said the results were “pleasing following a period of significant challenge, transition and change.”

It opened new stores in Bow Lane in the City and at the Coal Drops Yard development in Kings Cross in London as well as in Copenhagen and Munich.

It is paying a dividend of £2.848 million to founder and majority shareholder Sir Paul and other backers.

The upbeat figures come a month after rival fashion retailer Ted Baker warned that its profits could be down 90 per cent this year due to “unprecedented” levels of high street discounting..

In its annual accounts filed yesterday at Companies House, Paul Smith Group said: “Whilst we do not underestimate the challenges in our market, we have returned to a trend of growth and continue to build on the strong foundation resulting from our siginficant efforts and investments.

“Based on current levels of trade, and subject to an orderly Brexit, we expect another positive outcome for the coming year.”

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