Temperley, the renowned British luxury fashion brand, has encountered a series of obstacles in recent years, especially in 2019 when it faced a significant downturn in trading. The emergence of the Covid-19 pandemic further compounded its financial challenges, prompting a cautionary note from its auditor in its 2019 financial statements regarding its ability to sustain operations.
Nevertheless, despite these adversities, Temperley is unwavering in its confidence in its new strategic approach and operational framework. Under the leadership of a new CEO and with plans to capitalize on the brand’s appeal in the luxury retail sector, the company is looking ahead optimistically as it nears its 20th anniversary in business.
In 2019, Temperley documented a pre- and post-tax deficit of £3.74 million, an increase in net liabilities to £20.38 million, and a 13% reduction in turnover to £8.46 million. The drop in revenues was attributed by the company to past issues with product range and quality, which it asserts to have addressed comprehensively as part of its revised business strategy.
Despite the decline in sales figures, Temperley managed to enhance its gross margin and enforce stringent cost controls, leading to a reduced EBITDA loss of £2.9 million. The company has placed a strong emphasis on diversifying its product range, particularly in daywear, while continuing to fortify its eveningwear and bridal collections.
Founded by designer Alice Temperley in 2002, Temperley’s womenswear business is currently retailed in over 30 countries through wholesale channels. The brand is actively striving to redefine its image as a globally recognized luxury lifestyle brand with deep-rooted British heritage.
Demonstrating its commitment to expansion and adaptability in the dynamic fashion landscape, Temperley has made substantial investments in retail, such as launching a new franchise store in Dubai and revamping its e-commerce platform.
Despite its financial setbacks, Temperley has garnered significant support from its shareholders and successfully completed a new equity raise amounting to almost £1.9 million in 2019. With a renewed focus on enhancing its product offerings and further refining its strategic direction, Temperley remains resilient and upbeat about its future trajectory in the competitive fashion industry.
For further insights on luxury fashion brands and business strategies, you may find the following resources helpful:
Vogue Business – The Future of Luxury Fashion Brands
Harvard Business Review – Strategies for Staying Competitive in the Luxury Fashion Industry
