Paul Smith, the upmarket menswear business, has warned that trading this year will be “challenging” and reported a dip in full-year profits.
The Paul Smith business, which comprises both retail and wholesale, said in figures filed at Companies House that turnover over the year to June 30 was £168.4m, against £149.9m the year before. Pre-tax profits dropped slightly from £22.1m to £21.6m.
Wholesale sales increased across men’s and women’s collections with sales benefiting from good sell through according to the statement. Retail sales were boosted by new shop openings and a rise in UK like-for-like sales.
However, Paul Smith’s forward order book is down on the year and a director’s report said: “Sale orders for the coming year have fallen and the retail environment across all markets will be challenging. Given these difficult conditions, this will have an adverse affect on overall sales and profits for the year ending June 30, 2010.”
According to reports, sales in Britain rose by 7% to £59.6m, while sales in the rest of Europe were up by a quarter to £54.9m. In Japan business has been “difficult”. Sales outside Europe climbed 8% to £53.8m.
Founder Sir Paul Smith sold a 40% stake in the business to Japanese licensee Itochu in 2006.