LONDON — Paul Smith had a challenging 2025 due to the slowdown in luxury demand and a company restructuring, but current trading is on the upswing as operational and management changes begin to take hold.
According to the most recent Companies House numbers, which will be filed this week, group turnover fell 8 percent to 181.2 million pounds in fiscal 2025, which ended June 30. Retail and e-commerce sales were down 3 percent to 102.6 million pounds, while like-for-like retail sales were flat at 102.3 million pounds.
During the year, the company also culled many of its underperforming department and specialty store accounts leading to a 16 percent drop in wholesale revenue to 63.2 million pounds.
Paul Smith is the latest in a long list of fashion and luxury brands that have slashed the number of wholesale accounts to focus on their own retail, and to protect their brand image.
The company also flagged “significant trading pressures,” internationally during fiscal 2025 and said it has taken “decisive action to control costs, particularly in the U.S., where performance was impacted by operational consolidation and delayed order shipments.”
The brand, which sells at Neiman Marcus, was also impacted by Saks Global’s financial struggles during the period, and by separate wholesale accounts that “continue to manage stock levels and liquidity cautiously,” according to the company.
Due to the decline in wholesale restructuring costs and the dip in sales, the company made an operating loss of 10.8 million pounds, and a year-end loss of 16.4 million pounds.
Backstage at the Paul Smith men’s fall 2026 show in Milan.
Jonathan Daniel Pryce/WWD
There were some bright spots on the balance sheet. E-commerce sales overall increased by 14 percent during the period, while direct e-commerce accounted for 41 percent of total retail sales, up from 35 percent the previous year.
The business said it has clear digital growth plans and “continues to invest in online expertise, infrastructure, user experience and targeted marketing campaigns to support further growth and long-term value creation.”
Richard Woollams, chief financial officer, said, “In common with many other, similar businesses across the retail sector, we have found the past year challenging. But we are heartened by the growth in our e-commerce business, which reflects the investment we have made in this area.”
Woollams added that “with the restructuring we have undertaken elsewhere, and the focus on a refreshed product range that plays to our strength as one of the great British brands, we are confident these changes will lay the foundations for sustained profitability and long-term growth.”
The company said better times lie ahead. It is optimistic in particular about the opportunities in North America and has been “actively strengthening relationships” with key wholesale partners to improve overall performance in fiscal 2026, which ends on June 30.
In addition, the company said exceptional costs associated with restructuring, layoffs and overhead reductions are expected to deliver “tangible financial benefits” in the current year.
The company added it is now moving forward with a clear strategy “focused on fewer products, a leaner operating model and less discounting, in keeping with a global brand whose strength is distinctive design, British craftsmanship and brand heritage.”
Paul Smith taking a bow after his men’s fall 2026 show at Milan Men’s Fashion Week.
Giovanni Giannoni/WWD
Paul Smith also has new management in place to accelerate those changes. As reported, Ewan Venters, the former chief executive officer of Fortnum & Mason, joined as executive chairman last year and has been working alongside Sir Paul Smith in plotting the strategic direction of the business, broadening and strengthening its collection.
Woollams, who has been with the business since 2010 as financial planning and analysis manager, was promoted to the CFO role last year.
The company said current trading has been robust, especially in the U.S. and Europe. Full-price Paul Smith stores are performing “strongly,” with full-price sales up 11 percent on the prior year, supported by “a significant reduction” in promotional activity and 20 percent fewer sale days.
It added that margins have improved within the retail channel, driven by increased average transaction value and stronger full-price retail and e-commerce sales. The company has also moved into “a stronger positive cash position, with ongoing support from its banking partners.”
Ewan Venters has taken up the new role of executive chairman at Paul Smith.
Courtesy
The company said the U.S. will remain a key strategic focus going forward, while wholesale remains the most challenging part of the business. However, structural changes are underway to strengthen long-term performance and ties with partners such as Selfridges, where sales are significantly up year-on-year.
On the fashion side, the designer Sam Cotton joined the business last July as head of design for menswear. Cotton previously held positions at Lemaire, Nanushka, Valentino, Nike and JW Anderson. He used to have his own line with fellow menswear designer Agi Mdumulla, called Agi & Sam, and was mentored by Sir Paul in the early days of his career.
In April, the brand also plans to launch a Made in the British Isles capsule collection. The company said that British manufacturing has always been an important part of its collections, “and we are proud to be able to grow this as a continuous robust offering.”
