Hush Homewear, the prominent women’s fashion and lifestyle brand, grappled with a challenging fiscal year, revealing a revenue of £62 million in its latest financial report until March. While the performance fell below initial expectations, the company aligns itself with broader retail sector trends, addressing issues such as declining demand and increased costs amid the cost-of-living crisis and the Ukraine conflict.
To stimulate demand, Hush Homewear strategically employed discounting, leading to a 20% decrease in gross profit margin compared to the previous year. Despite these challenges, the brand maintained its commitment to future growth by investing in marketing, sustainability initiatives, and staff development. Notably, the customer database experienced a 17% increase, attributed to targeted digital channel investments and effective marketing activities.
However, the fiscal year posed significant hurdles, with the previous year’s revenue reaching nearly £68 million, and gross profit standing at £28.3 million compared to £22.7 million this time. Operating profit and pre-tax profit witnessed an 84% decline, dropping from £8.5 million to £1.4 million. Net profit also saw a substantial decrease from £7.4 million to £1.4 million.
Amid this challenging period, Hush Homewear underwent leadership transitions, appointing Sarah Miles as the new CEO, effective from January 16, and welcoming Melissa Dick as the Chief Creative Officer in February, bringing expertise from Tapestry’s Coach brand.
Despite setbacks, Hush Homewear remains steadfast in its strategic investments and initiatives to navigate the evolving retail landscape.