LONDON — Business is on the upswing at Paul Smith Group Holdings Ltd., which saw profits nearly double to 3.7 million pounds in the year to June 30, according to the latest filing on Companies House, the official register of U.K. businesses.
The growth follows the company’s efforts to tighten operations, consolidate systems and warehousing, and pursue growth via new store openings and investment in its omnichannel offer.
The business overcame such challenges as temporary store closures due to the “gilets jaunes” protests in France, uncertainty about Brexit and falling footfall to post an 8.9 uptick in turnover to 214.9 million pounds.
In fiscal 2019, it opened stores in Bow Lane and Coal Drops Yard in London, and units in Copenhagen, Denmark and Munich. It also established a new outlet shop in California.
Both retail and wholesale sales grew, with the former up 14 percent, and 6 percent underlying. Growth has persisted in the current fiscal year, with sales of the spring 2019 collection up 9 percent, and 6 percent underlying.
In 2019, wholesale sales to franchise partners, department stores, multibrand stores and online retailers increased 4.8 percent to nearly 80 million pounds. The company said it performed well, both in terms of deliveries and sell-through at wholesale.
Forward orders for spring 2020, confirmed after the end of the 2019 fiscal year, were 10 percent up on the previous season.
E-commerce, the company said, accounted for 24 percent of retail sales and rose12 percent in 2019.
License income, for products such as fragrance, rugs, eyewear, and children’s wear, was flat year-on-year at 21.5 million pounds.
Operating profit climbed 72 percent to 5.7 million pounds, due to the increase in sales and to a decrease in the cost of exceptional items compared with the previous year.
The company called the 2019 results “pleasing, following a period of significant challenge, transition and change.”