Smythson posts profit amid sales downturn
04/04/2022
The figures almost encompass the entirety of the first UK covid-19 lockdown, as well as subsequent lockdowns during the same year.
Profit on earnings before interest, taxes, depreciation and amortisation (EBITDA) basis was £3.1 million ($4 million), a significant boost on the previous year, when it posted a £5.2 million ($6.8 million) loss. Meanwhile, pre-tax profit and net profit both reached £1.9 million ($2.5 million), in comparison to the £6.4 million ($8.3 million) loss it registered for the comparative year.
Smythson manufactures its leathergoods in Italy through a group-owned enterprise. It is currently developing a second Italian hub, where European Union and rest-of-world orders will be despatched from in the future. Non-UK wholesale orders are already being handled by its Italian partner.
Moving forward, Smythson said it will close unprofitable stores, place a greater emphasis on digital channels, broaden its reach across markets considered key to its growth and further invest in product development and marketing.
Image: Smythson.
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