UK fashion brand Fred Perry Limited has released its pre-pandemic financial results for the nine-month period leading up to the end of 2019. Despite a decrease in margins and profits due to the changed reporting period, the company demonstrated a continuous improvement in sales. During this period, Fred Perry Limited achieved a net turnover of £88.2 million, compared to £122.2 million in the previous year.

The company’s gross profit also decreased from £66.1 million to £44.8 million, with a gross margin percentage of 50.7% compared to 54.1% previously. Net profit fell from £22.82 million to £9.67 million. Fred Perry’s parent company, Fred Perry (Holdings) Limited, reported similar results, with a net turnover of £91.2 million during the nine-month period, down from £127 million in the previous year. Gross profit decreased from £68.8 million to £46.3 million, and pre-tax profit narrowed from £31.5 million to £12.5 million.

While the company did not provide an update on its performance since these results, it acknowledged the impact of the pandemic on its business. Fred Perry implemented cost control measures, reducing discretionary projects and reviewing its capital spending plans. It focused on long-term strategic projects and social commerce. Despite uncertainties surrounding Brexit, the company stated that its supplier base outside of the EU helps mitigate trading friction risks between the UK and EU. It also plans to expand its European distribution center to enhance delivery to EU customers.

Despite the challenges posed by the pandemic, Fred Perry remains optimistic about its brand strength and significant cash reserves. The company aims to target “global and hyper-connected” customers by transitioning from a seasonal approach to quarterly collections, continuously providing newness and brand-nourishing stories. It also seeks to enhance its brands by controlling distribution channels through a hybrid retail and wholesale approach. Social commerce, which combines product, music, sport, and subculture, is a key focus for Fred Perry, as is its commitment to social responsibility.

Overall, Fred Perry is confident in its future prospects, backed by a solid net cash position of over £100 million and no borrowings. While the ongoing pandemic will continue to impact trading, the company believes that its brand strength and strategic decision-making will enable it to successfully navigate these challenges.

Useful links:
1. Official Website of Fred Perry
2. Latest financial news about Fred Perry