Fred Perry is back on track in latest year

Fred Perry Limited has filed its accounts for 2022 and said that the year put it back on the path it had been on prior to the pandemic.

Revenue rose by 20.8% to reach £135.7 million as its own stores and those of its retail partners returned to normal trading. 

Gross profit reached £64.5 million, up from £55.9 million in the previous year, although the gross margin percentage fell to 47.5% from 49.7%, the significant increase in freight costs denting the margin starting in the earlier part of the year. 

But the company managed to report a 34% increase in pre-tax profit, reaching £15.6 million. Net profit also rose, jumping to £12.9 million from £9.4 million. 

The firm said the year was dominated by two strong themes, the first, as mentioned above, being “the restoration of our revenue position, putting us back on our expected trajectory prior to the global pandemic”. In fact, the year’s revenue figure was at a record level, albeit with that continued pressure on the gross margin. 

The second theme was the brand’s milestone 70th birthday. The landmark was celebrated with an exhibition at the Design Museum, alongside other events. 

Regardless of those one-offs, the company said 2022 was a more stable year after the dramatic impact of the pandemic in previous periods and the European disruption of Brexit. It added that its long-term relationships with its customers and suppliers were part of what helped it to cope with both situations.

But as the margin pressure showed, the year was also clearly a challenging one. The Russian invasion of Ukraine impacted the price of doing business, as well as the disposable income, and spending habits of its customers, and the cost of living for its employees. 

Cost increases were a big issue during the year and the company also took some key decisions, such as closing its Shoreditch store “due to the performance of the location and the value to the brand”.