Fred Perry Limited recently released its financial accounts for the year 2022, and the results highlight a positive return to its pre-pandemic trajectory. The company reported a significant increase in revenue of 20.8%, bringing in £135.7 million as its stores and retail partners resumed normal trading. This growth also translated into an improved gross profit, which rose from £55.9 million to £64.5 million.

However, it should be noted that the gross margin percentage dipped slightly to 47.5% from 49.7%. This decrease can be attributed to the substantial increase in freight costs experienced earlier in the year. Despite this challenge, Fred Perry managed to achieve an impressive 34% increase in pre-tax profit, totaling £15.6 million. The net profit also saw a substantial rise, reaching £12.9 million compared to the previous year’s £9.4 million.

The company attributes its success to two key factors that played a significant role throughout the year. Firstly, the restoration of revenue brought them back on track to their expected trajectory prior to the global pandemic. This achievement is noteworthy, considering the pressure the company faced due to the increase in freight costs. Additionally, the second theme that contributed to their success was the celebration of the brand’s 70th birthday milestone. To commemorate this occasion, Fred Perry organized a range of events, including an exhibition at the Design Museum.

While these one-off events were successful, Fred Perry acknowledges that 2022 was a more stable year compared to the preceding periods heavily impacted by the pandemic and Brexit disruptions in Europe. The company attributes its ability to navigate these challenges to its longstanding relationships with customers and suppliers, highlighting the importance of adaptability and resilience.

However, it is important to note that 2022 also presented its own set of challenges for Fred Perry. The invasion of Ukraine by Russia had significant implications for the cost of doing business, disposable income, consumer spending habits, and the cost of living for employees. Additionally, rising costs throughout the year forced the company to make some difficult decisions. One such decision was the closure of its underperforming Shoreditch store, as it was deemed detrimental to the brand’s overall value.

In summary, Fred Perry’s accounts for 2022 demonstrate a company that is determined to overcome adversities and regain its pre-pandemic momentum. With a focus on revenue restoration and the commemoration of its 70th birthday, the brand continues to prioritize stability, customer relationships, and adaptability in the face of ever-changing circumstances.

Useful links:
1. This Is Money – Fred Perry’s Profits Double as UK Customer Demand Rises
2. Financial Times – Fred Perry Sees Strong Recovery in Revenue