Johnstons of Elgin, a renowned textile company with a rich history, has recently shared a sobering update on its sales forecast for the year. Simon Cotton, the company’s CEO, has voiced concerns regarding the significant impact of the ongoing Covid-19 pandemic on their revenue streams. In an interview with The Herald, Cotton revealed that they are anticipating a staggering decline of more than 30% in sales for the year 2020, with a gradual recovery projected for 2021.
The previous year had seen Johnstons of Elgin enjoying a successful period, with sales reaching an impressive £77 million, largely attributed to an increasing demand from international customers. However, the necessary lockdown measures implemented in response to the pandemic forced the closure of the company’s mills and retail outlets, resulting in the temporary furlough of a majority of their team members. This financial setback was further exacerbated by the closure of their Nantucket store in the US towards the end of 2019.
Despite the challenging outlook for the remainder of 2020, Johnstons of Elgin remains hopeful and resilient. Having recorded profits of £6.4 million in the previous year, the company is confident in its ability to weather the current storm. They have secured vital funding from the Royal Bank of Scotland through the Coronavirus Large Business Interruption Scheme, ensuring that their financial position remains stable.
In addition to the impacts of the pandemic, the company is closely monitoring the potential consequences of the UK’s trading relationship with the European Union. With nearly £30 million in sales attributed to exports in 2019, any disruptions in trade could pose further challenges to their operations. Simon Cotton emphasized the significance of maintaining tariff-free access to these key markets for the sustained success of their business.
With a legacy spanning over two centuries, Johnstons of Elgin has established itself as a leading player in the luxury knitwear industry. Boasting flagship stores in London and Edinburgh, as well as a presence in various Scottish towns, the company is actively strategizing to navigate through the current difficulties and emerge stronger. Despite the uncertainties ahead, Johnstons of Elgin remains steadfast in their commitment to continue trading seamlessly in their important markets.
For more information on Johnstons of Elgin and their products, you can visit their official website here. Additionally, to stay updated on their latest news and developments, you can follow them on their social media profiles.
