Barbour, the renowned fashion brand, recently announced its financial results, showing an increase in sales but a decline in profits. Despite a rise in turnover from £286.5 million to £343.1 million, the company faced significant increases in the cost of sales. This led to a growth in gross profit, reaching £149.4 million from £128.8 million, but a decrease in operating profit, dropping to £34.3 million from £40.3 million. Consequently, profit before tax also saw a decline, falling from £40.5 million to £36.3 million, with net profit for the financial year decreasing to £28.1 million from £33.8 million.
However, Barbour highlighted that it is steadily recovering from the impacts of the pandemic. This is the first full year in which the pandemic was not a major factor, and the £6 million reduction in operating profit can be partly attributed to a property sale from the previous year. When comparing like-for-like operating profit, the decrease is only £0.8 million.
The company emphasized that these results demonstrate the strength and resilience of its brand in the market, as well as the trust of its loyal customers. However, it also acknowledged the challenges posed by the uncertainty of a post-Covid world, a cost-of-living crisis, and the ongoing conflict in Ukraine. These factors have affected margins across all channels and markets. Barbour disclosed that it did not raise prices in line with the cost increases it faced, resulting in difficulties in maintaining profitability in the highly competitive global market.
Barbour has a global distribution network, operating directly in the UK and Ireland, and through wholly-owned subsidiaries in Germany and the US. Additionally, it benefits from exclusive distributor partnerships that grant access to major international markets. Despite the challenges faced in recent years, Barbour maintains a strong balance sheet, with cash reserves exceeding £106 million, compared to less than £59 million the previous year. This financial stability allows the company to focus on long-term investments and priorities while ensuring excellent customer service and sustainability.
While Barbour is committed to expanding its international reach and establishing long-term relationships, it approaches each step with caution due to the current circumstances. The company’s ability to navigate these challenges, maintain its brand strength, and secure its financial position will be crucial for its future growth and overall success.
Useful links:
1. Barbour Official Website
2. Barbour Contact Us
