Demand enables Barbour to weather storm

Nov 4 2009 by Karen Dent, The Journal

CLOTHING maker Barbour says it is holding its own against tough competition in the recession-hit fashion market after seeing a healthy rise in profits last year.

The South Shields firm whose clients range from ramblers to rock stars and royalty has just published results for last year which show that pre-tax profits rose from £9.2m in 2007 to £12.9m in the 12 months to the end of 2008.

Privately owned J Barbour and Sons also increased turnover by 8% to £68m in 2008 from £62.7m in 2007. The company’s waxed jackets and the rest of its extensive range performed well as the demand for weatheproof gear has been strong with the growth of the domestic holiday market and the growing popularity of its products as fashionwear rather than simply protection against the wind and rain.

However, the annual accounts also showed that staff numbers fell from 578 in 2007 to 531 last year.

Managing director Steve Buck said the company was continuing to make good progress and was “satisfied” with the 2008 results.

“In the current economic climate we continue to face the challenge of rising costs and while the profit line shows an increase from 2007, this is being helped considerably by foreign exchange gains resulting from the global sales mix that has added to the overall performance,” he said.

“Barbour is an established lifestyle brand and our customers have confidence in the quality, durability and longevity of our clothing.”

The company has continued to review its strategy and Mr Buck said that this year has proved more difficult than 2008.

“Economic conditions in 2009 have been worse than 2008, particularly in Continental Europe,” he said. “Nevertheless our business has continued to hold up well, especially in comparison to our competitors.”

Barbour, which is best known for the iconic waxed jackets it has been producing for a century, has been making further inroads as a high-end lifestyle brand. It began producing contemporary and heritage lines in 2000 alongside its sporting ranges and is continuing attempts to broaden its appeal.

Mr Buck said: “The range now includes new styles of fitted and more tailored jackets alongside knitwear, shirts, trousers and accessories which appeal to a wider customer base.”

The company won the prestigious national Best Brand Award at the Sunday Times PricewaterhouseCoopers Profit Track 100 Awards in the summer.

Barbour sells around 600,000 wax, waterproof and quilt jackets worldwide annually. It sources items worldwide but the mainstay of waxed jackets are still made by hand in South Shields.