Belstaff, the luxury fashion brand, has released its financial results for the year ending December 2022. While the company experienced a notable increase in turnover, it also incurred significant losses due to exceptional items. These mixed results come as Belstaff prepares to celebrate its 100th anniversary in 2024.

The accounts filed by Belstaff emphasize the brand’s reliance on its owner, INEOS, which is owned by billionaire Sir Jim Ratcliffe. These accounts note that there is a “material uncertainty” regarding the brand’s ability to continue operating and that it requires additional financial support. Although there is currently no formal agreement in place, INEOS has been supportive since acquiring the brand in 2017.

In terms of financial performance, Belstaff achieved a significant increase in turnover, reaching £59.7 million, representing an 18.9% growth compared to the previous year. This growth was observed across all areas of the business, including both wholesale and retail stores. Gross profit also saw a notable increase, amounting to £11.8 million compared to £8.7 million the previous year.

However, operating losses also increased, rising by £9.6 million to £14.2 million. This rise can be attributed to a £15.5 million movement in exchange differences, primarily linked to the revaluation of inter-company loans. As a result, the pre-tax and net losses for the year widened to £28.8 million from £16.6 million.

Despite these losses, Belstaff highlighted the underlying EBITDA, excluding the impact of exchange differences, as a better reflection of the company’s performance. On this basis, the losses narrowed from £11.3 million to £5.8 million, indicating some progress.

Belstaff’s main objective is to achieve growth in both revenue and profitability, and the company plans to do so by refocusing on its brand image and heritage. To support this objective, Belstaff has refreshed its visual identity and introduced new product categories and technical fabrics. The brand also unveiled a new retail concept at its Regent Street Flagship in London, which aims to modernize its motoring heritage. Additionally, Belstaff intends to renovate its existing store portfolio in line with the new design and identify new opportunities in strategic brand-relevant locations.

Furthermore, Belstaff recognizes the significance of its wholesale customer portfolio and aims to establish strong brand partnerships that align with its image and increase market awareness while maximizing returns.

As Belstaff enters its 100th anniversary year, it faces both opportunities and challenges. By leveraging its brand heritage and implementing strategic initiatives, the company aims to drive growth and achieve long-term success in the competitive luxury fashion industry.

Useful links:
Belstaff official website
Retail Gazette article on Belstaff’s financial results