Fashion brand Paul Smith saw losses widen in its annual results as its sales declined over the period. 

The company pulled in a pre-tax loss of £16.7m from June 2024 to the end of June 2025, rising from its £5.4m loss the year before.

The retailer attributed the loss to declining sales, “predominately in the wholesale channel, quicker than it was possible to restructure and align the cost base to our new strategy and channel focus on digital and retail”.

Paul Smith’s gross profit fell 7 per cent to £97m, as sales also dropped 8 per cent to £181m.

Retail revenues declined 3 per cent year on year to £102m, while wholesale revenues slumped 16% to £63m.

Despite this, ecommerce sales grew by 14 per cent over the period.

The year represented a period of strategic transition and restructuring for Paul Smith, as it took “decisive action” to streamline its global wholesale channels. It also continued to accelerate growth in its retail and ecommerce arms, scale down discounting, improve gross margin and control overhead costs.   

The business was hit with “significant trading pressures” internationally, particularly in the US where its performance was affected by “operational consolidation and delayed order shipments”.

Paul Smith CFO Richard Woollams said: “It is fair to say that, in common with many other similar businesses across the retail sector, we have found the past year challenging. 

“But we are heartened by the growth in our ecommerce business, which reflects the investment we have made in this area.”

He added: “With the restructuring we have undertaken elsewhere, and the focus on a refreshed product range that plays to our strength as one of the great British brands, we are confident that these changes will lay the foundations for sustained profitability and long-term growth.”

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