Thomas Sabo UK’s accounts for the year to June 2024 have been filed at Companies House and they show the subsidiary of the German jeweller enduring another tough period on the sales front.
THOMAS SABO
The previous 12 months had also been difficult with turnover dropping, the cost of sales rising and profit on multiple measures down.
This time it was more of the same on sales — which it described as “disappointing” — but profits improved. Turnover fell to just under £9.236 million from almost £11.293 million, although the cost of sales did fall. Gross profit dropped to £1.474 million from £2.704 million but operating profit rose to £241,981 from £184,913. Profit before tax rose to £293,343 from £209,530 and net profit for the year was up to £275,457 from £209,530.
The company (which sells its own brand of fashion jewellery and watches through its retail shops, concessions in department stores, the webstore and through wholesale in the UK) said the year was a difficult one for most retailers but particularly for those specialising in fashion jewellery.
That market was “significantly affected by economic difficulties”. This means high inflation and high interest rates that had also affected the previous year leading to the cost-of-living crisis. It said domestic demand softened and along with changes to its store portfolio it had a negative impact on sales.
But its tight control of costs meant that the inflationary rise in salaries was almost offset by other reductions in admin expenses. The company also received a margin adjustment credit from a group company, which boosted the year’s profit.
And it remains optimistic about the current year with it talking of expectations of a “significant recovery in sales”, and with continued financial support from the parent group it should be profitable.
That recovery in turnover should be seen both in the company’s stores and online based on its experience of the year so far. It said there have also been significant reductions in shop rents as leases have been renewed.
