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.