Paul Smith FY15 turnover declines 8.4 percent

British fashion company Paul Smith Group Holdings reported an overall group turnover decrease of of 8.4 percent for the financial year ended 30 June, 2015.

Operating profit before exceptional items was down by 41.8 percent to 11.04 million pounds from the previous year, and after exceptional items down 49.8 percent to 9.52 million pounds. The decline is attributed to moderate decrease in revenue as well as increased investment in Paul Smith's restructuring plan.

Last Novemeber the company revealed plans to consolidate its collections which included Paul Smith, Paul Smith Jean and Paul Smith London, in two distinct lines: Paul Smith and PS by Paul Smith, for both women and men set to launch this autumn.

Retail sales decresed an overall of 4.8 percent during the financial year, and 3 percent on a like-for-like basis, which was attributed to a mixed performance across Paul Smith's core markets as well as the temporary closure of its Heathrow Terminal 5 store. E-commerce sales increased 12 percent, as the company continues to invest in the development of its website.

Wholesale sales declined by 11.3 percent on the previous year, as the company aims to review all major distribution channels in anticipation of the launch of its renewed collection structure. Paul Smith continued to expand its presence in key markets, with two new stores opening in New York, USA and a new shop in Canary Wharf in London. The company also continued to open franchise stores in China and opened its first franchise in Luxembourg.

This article has been amended to reflect the actual financial results of Paul Smith Holdings for the financial year to June 30, 2015