Luke 1977, the contemporary fashion label founded by Saint Martins graduate Luke Roper, has reported its financial results for the year ending January 2024. The company revealed a 5.5% decline in revenue, bringing total sales to £16.2 million.
Despite the drop in revenue, the brand saw a slight increase in operating profit, which rose to £1.05 million from the previous year’s £1.03 million. Both profit before tax and net profit also showed marginal growth, reaching £1.04 million, up from £1.02 million.
In its financial summary, Luke 1977 pointed to the ongoing cost-of-living crisis and high interest rates as key factors affecting its performance. However, the company managed to improve its profit margins by 2.8%, thanks to strategic improvements in sourcing and stock deliveries made in the prior year. Overhead costs remained stable.
Looking ahead, the company expressed concerns about the economic environment, particularly as global inflation has eased but risks remain. It flagged potential disruptions to its supply chain stemming from conflicts in the Middle East.
The board remains cautious, predicting that current economic pressures will likely impact the fashion industry for another two to three years. Additionally, the company is focused on tackling climate-related challenges, including reducing its carbon footprint and increasing the use of recyclable materials.
In response to these hurdles, Luke 1977 is actively negotiating prices with suppliers and exploring cost-effective alternatives that don’t compromise quality. The brand is also investigating the use of sustainable fabrics, recyclable packaging, and sourcing from closer suppliers.
On a more positive note, Luke 1977 is exploring growth opportunities in new product categories and international markets, although specific plans have not been disclosed. The company is also seeking to expand its retail presence and enhance its e-commerce offerings as part of a three-year strategic plan.
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