Fred Perry Limited has unveiled its 2022 financial report, marking a triumphant return to the trajectory it was on before the pandemic.
The company reported a remarkable 20.8% surge in revenue, reaching £135.7 million, as both its standalone stores and retail partners resumed normal trading operations.
Gross profit for the year reached £64.5 million, a significant increase from the previous year’s £55.9 million. However, the gross margin percentage slightly declined to 47.5% from 49.7%. This decrease was primarily attributed to the significant rise in freight costs during the earlier part of the year.
Despite this, Fred Perry managed to achieve a remarkable 34% surge in pre-tax profit, totaling £15.6 million, while the net profit also saw a significant rise, jumping from £9.4 million to £12.9 million.
The standout feature of the year was the restoration of revenue, effectively placing the company back on its projected trajectory before the global pandemic. In fact, the revenue for the year reached a record high, albeit with continued pressure on the gross margin.
The second major highlight was Fred Perry’s 70th anniversary, celebrated with an exhibition at the Design Museum and various other commemorative events.
In addition to these achievements, the company emphasized that 2022 marked a return to stability after the tumultuous impact of the pandemic and the disruption caused by Brexit. It credited its longstanding relationships with customers and suppliers as instrumental in navigating these challenges.
However, it’s important to note that the year was not without its challenges. The Russian invasion of Ukraine affected the cost of doing business, disposable income, and spending habits of customers, along with increased living costs for employees.
Cost escalation was a major concern throughout the year, prompting the company to make significant decisions, including the closure of its Shoreditch store due to performance issues and its impact on the brand’s value.
In summary, Fred Perry’s impressive performance in 2022 reflects a successful resurgence, despite significant challenges, demonstrating resilience and adaptability in the ever-evolving business landscape. Fred Perry has demonstrated that even in challenging times, strategic decisions and unwavering commitment to quality and service can lead to remarkable growth and success.
