Paul Smith halves operating loss as FY sales surge 35%

Fashion retailer Paul Smith has almost halved its operating loss from £16.16m to £8.25m for the year ended 30 June, as its retail sales surged 35% to £97.1m.

The group attributed the increase to an increase in footfall as its stores remained open and were unaffected by covid restrictions that had plagued the comparable period. It also confirmed that online sales accounted for 34% of its total sales, down from 54% the previous year.

Meanwhile, group turnover increased 22% to £197.3m, up from £162m the previous year. It also confirmed that gross profit was up 29% year on year to £58.8m.

In the trading update posted to Companies House, the retailer said: “The directors consider the result for the year to be pleasing following another period of significant challenge. The financial results reflect the benefits of the mitigating steps we took during the pandemic and the increased demand for our products since the pandemic.

“The business has recovered strongly but in common with other retailers, continues to face challenges including the impact of rising inflation and low consumer confidence.”