Aspinal of London continues to bounce back in latest year

Luxury leathergoods specialist Aspinal of London has filed its accounts for the year to the end of last March and it seems to have been a positive period for the firm.

The company said that sales across its business grew 19% from £29.8 million in FY22 to £35.4 million in the next reporting year. 

This helped the business achieve adjusted EBITDA for FY23 of £7.3 million, an even bigger jump of 32% compared to the £5.5 million achieved in the previous year.

Operating profit rose from £4.1 million to £6.09 million and profit before tax was up from £3.7 million to £5.5 million. 

But the cost of sales also rose from £11.8 million to £13.2 million this time, and administrative expenses went up from £13.2 million to £15.6 million. 

So it’s no surprise that net profit for the year dropped from £5.48 million down to £4.23 million. 

The company said the majority of its sales were generated online during the year and while it recognises the risks linked to the wider economic environment, it believes its “continued investments in supply chain, product development, merchandising, customer service and marketing will continue to enhance the strength, demand and longevity of the brand, enabling us to grow market share”.

Its priority for the current year that ends this March has been to “develop and grow sales in domestic and international e-commerce channels by the evolvement and expansion of digital marketing channels”. 

But despite having exited a number of physical retail spaces in previous years, it still aims to “support online and brand development by operating retail stores in key strategic locations”.

The company appears to have bounced back strongly after a bruising period due to the pandemic that saw it launching a CVA and closing a number of directly-operated UK stores. 

The company had earlier gone through an ambitious expansion phase and even named Giles Deacon as it design chief in 2018.

Despite most of its sales being made online, it still operates physical standalone in central London, as well as concessions in upscale department store Harrods and Selfridges, and two stores in China.