Portmeirion H1 sales rise 1.3% to £37.1m despite US tariffs
In the UK, sales rose 3%, driven by a 15.5% increase at home fragrance brand Wax Lyrical. However, UK tableware sales saw a decline of 8.9% partly due to a one-off product launch
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Homeware retailer Portmeirion Group has reported a sales rise of 1.3% to £37.1m in the six months to 30 June, thanks to a rebound in South Korea and strong international demand despite disruption in the US, its largest market.
The group, which operates brands Spode, Portmeirion, Royal Worcester, Nambé, Pimpernel and Wax Lyrical, revealed that, excluding the US, sales grew by 10.8% during the period.
It comes as sales fell by 10.6% in North America following the introduction of tariffs on imports from Asia, prompting the group to accelerate its onshoring initiative in Stoke-on-Trent.
Mortmeirion also launched a review of its US sales strategy in March, reducing supply to some low-margin retailers and planning new branded stores, including an eighth Nambé store in Dallas and a ceramics pop-up in New Jersey.
In the UK, sales rose 3%, driven by a 15.5% increase at home fragrance brand Wax Lyrical. However, UK tableware sales saw a decline of 8.9% partly due to a one-off product launch in the previous year and the planned closure of a factory outlet.
South Korean sales rose 31.6% as the market continued to recover from post-pandemic stock issues, while international sales excluding the US, UK and South Korea increased by 11.2%, helped by new distributors and product innovation.
Net debt at the end of June stood at about £14.8m, up from £13.4m a year earlier, largely due to earlier shipments to the US and associated tariff costs.
Mike Raybould, chief executive of Portmeirion Group, said: “The imposition of additional import tariffs in the USA at the beginning of Q2 caused immediate disruption and significant uncertainty in our largest and most profitable market. We have proactively implemented a number of actions in response to these challenges and will continue to monitor the situation closely.”
Looking ahead, the company expects “modest sales growth” in the second half, with continued improvement in South Korea and international markets, steady performance in the UK and caution in the US.
Portmeirion said its onshoring initiative would also increase UK manufacturing despite higher costs, supporting its brands in the medium to long-term.
