Fred Perry reports record year as profits surge

British heritage brand Fred Perry has reported a “record year” as its profit before tax increased by 34% to £15.6m for the 12 months to 31 December 2022.

Its revenues also increased by 20.8% year on year to £135.7m.

Fred Perry said that 2022 saw a more stable year after “the dramatic impact to the retail sector of the global pandemic and the European upheaval of the Brexit deal”.

It also attributed the group’s profits to its 70th birthday celebration, with an accompanying exhibition at London’s Design Museum alongside other celebratory events.

Additionally, it reported a gross profit of £64.5m (2021: £55.9m) and gross margin percentage of 47.5% compared with 49.7% in the previous year.

The gross margin decrease was due to “significant increase in freight costs [which] took hold in the earlier part of the year”.

Looking ahead the brand said: “Despite challenges such as the Russia Ukraine war, and the ongoing cost of living crisis, we continue to manage costs to hold on to an enviable profit percentage, and maintain a very strong net asset position with large cash reserves.”