Your browser is no longer supported. For the best experience of this website, please upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

Profits fall 26% at Paul Smith

British designer label Paul Smith has reported a 26% drop in operating profits to £18.4m for the year to June 30, as global wholesale sales fell by 5.8%.

Wholesale sales fell to £113.7m, compared to £120m in 2012 with the company citing “continuing challenges” in the global economy. The business said it expected the division to continue to be difficult in the coming year.

Turnover decreased by 1.2% to £176.7m from £178.8m in 2012. UK sales totalled £70.9m for the period.

Retail sales fell by 5% to £48.3 down from £45.9m in 2012, however ecommerce sales exceeded expectations, a statement filed at Companies House said.

Readers' comments (6)

  • Also because they charge too much for the level of quality of the garment.

    Unsuitable or offensive? Report this comment

  • There is some truth in the above statement although there drop in sales will be a result of forgetting there core consumer as they have continued to push price point up, when you have a solid customer base you can not expect them to simply pay more for it season after season, Paul needs to get a grip of this and stop been something he isnt

    Unsuitable or offensive? Report this comment

  • Price point have risen too much and I have to agree with above, they are an affordable luxury brand which is why they have broad appeal - but the customer has only got so much money and they need to re-think how far they push this before it is out of reach of the traditional customer base

    Unsuitable or offensive? Report this comment

  • Every brand need an entry and exit price point per category - I think Paul Smith have forgotten this, great brand but the punter who buys PS in the UK are been pushed away from it due to prices increasing, surly they can see this in there own stores!

    Unsuitable or offensive? Report this comment

  • You can not argue with the results, still a fantastic business and brand but I agree with most of what's been said above, prices are an issue, if they want premium price point they should do this through there main line collection not the mainstream areas of the brand

    Unsuitable or offensive? Report this comment

  • In short, Paul Smith have been taking the p*ss for too long. The first post was spot on, they charge too much for the level of quality of the garment. I'd say their items are overpriced between 20-40% (retail).

    Either the quality must improve or the prices have to go down. You cannot have it both ways as you get found out and have nowhere to go. A PS suit is an insult to ones intelligence.

    There are other quite successful brands who are going the way of Paul Smith, so they should take heed.

    Unsuitable or offensive? Report this comment

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.