Belstaff International, the renowned luxury brand famous for its iconic motorcycle jackets and outerwear, has announced impressive sales growth for the year ending December 31, 2021. Despite the difficulties faced during the pandemic in 2020, the company has managed to make a strong recovery, with a notable 16.6% increase in turnover, totaling £50.2 million.

Although the gross margin percentage remained relatively steady at 17.4%, up slightly from 17.3% in the previous period, Belstaff experienced a rise in the cost of sales. Nonetheless, the overall surge in sales resulted in a gross profit of £8.7 million, a significant improvement compared to £7.4 million in the previous year. Despite these positive results, Belstaff still incurred an operating loss, albeit a reduced one, with a noteworthy improvement of 78% to £4.5 million, down from a loss of £20.4 million in the preceding period.

Furthermore, Belstaff reported a pre-tax loss and net loss of £16.6 million for the year, marking a substantial improvement from the previous year’s loss of £31.1 million. These financial figures demonstrate the brand’s progress in mitigating the adverse effects caused by the pandemic.

Belstaff has outlined its objectives of driving revenue and profitability growth, alongside a focus on reducing group operating costs. To achieve these goals, the company plans to optimize its retail network by selecting suitable locations that align with the brand and offer reasonable rental rates. Additionally, Belstaff constantly evaluates its wholesale customer portfolio to identify strategic brand partnerships that can enhance market awareness and maximize returns.

In its efforts to strengthen its market position, Belstaff places great importance on its brand image, rich history, and heritage. This includes reevaluating its retail network, introducing new product categories, and incorporating advanced technical fabrics. However, the company faced ongoing challenges due to the pandemic throughout the year under review. Nevertheless, as the financial year drew to a close, Belstaff began to observe a return to a more normal business environment post-Covid.

Although no specific updates were provided for 2022, Belstaff has announced a business reorganization. Belstaff International plans to acquire the majority of inventory held in Italy from its sister company, Belstaff SRL, for €7.9 million by the end of the year. This reorganization has resulted in the expansion of the London-based teams to incorporate group finance and logistics functions, which were previously located in Italy.

Belstaff’s resilient performance during a challenging period highlights its commitment to adapting and flourishing in the luxury fashion industry. With a steadfast focus on driving revenue growth, profitability, and cost reduction, the brand is well-positioned to navigate the ever-evolving market landscape and continue its streak of success.

Useful links:
Belstaff International Official Website
Belstaff on Instagram