The parent company of British outdoor fashion brand Barbour, J Barbour & Sons Limited, recently reported their financial performance for the fiscal year ending April 2023 in documents submitted to the UK government. The report shows an increase in business revenue but a decline in profits.
- Turnover increased from 286.5 million GBP to 343.1 million GBP, a 19.7% increase over the previous year.
- Gross profit rose from 128.8 million GBP to 149.4 million GBP, though the gross profit margin decreased to 43.6%.
- Operating profit decreased from 40.3 million GBP to 34.3 million GBP, and the operating profit margin dropped to 10%.
- Pre-tax profit fell from 40.5 million GBP to 36.3 million GBP.
- Net profit declined from 33.8 million GBP to 28.1 million GBP.
- Inventory increased to 76.6 million GBP.
J Barbour & Sons stated that the company is still recovering from the post-pandemic period, with a 6 million GBP decrease in operating profit due to the sale of some assets in the previous year. Compared to the same period last year, operating profit only decreased by 0.8 million GBP. Their performance demonstrates the continued resilience of the Barbour brand and the trust customers place in it. However, it also indicates that “in the post-pandemic era, the cost of living crisis and the uncertainties and economic challenges brought by the Russia-Ukraine geopolitical situation mean that profit margins across all channels and markets face many challenges.”
J Barbour & Sons acknowledged that it did not raise prices in response to cost increases, and that achieving profitability in an uncertain and competitive global market remains a challenge.
Barbour currently operates directly in the UK and Ireland and through wholly-owned subsidiaries in Germany and the USA. In addition, the brand has established good cooperation with exclusive distributors to enter major international markets.
Barbour has recently been active in the Chinese market, opening new stores in Qingdao and Tianjin Hisense Plaza from November to December 2023, establishing China’s first new concept store in Chengdu Taikoo Li, and opening China’s first outlet store in Bicester Village Shanghai.
Despite facing challenges, the company’s balance sheet remains strong, with total business cash exceeding 106 million GBP, up from less than 59 million GBP the previous year. This allows the company to focus on long-term investments and priorities while protecting customer service, sustainability, etc.
J Barbour & Sons said that while the company is cautious about every step it takes, it will continue to focus on establishing long-term partnerships in international markets and expanding its business coverage.
| Source: UK Government Official Website Documents, Official Financial Reports
| Image Credit: Barbour Official Website
| Editor: LeZhi