Barbour is boosted by sales rise in America
Dec 6 2010 by Chris Knox, The Journal
CLOTHING manufacturer Barbour expects to record sales growth of over 10% this year after benefiting from a surge in sales of quilted jackets in the UK and a growing market share in the US.
The South Shields-based company is currently riding high in the fashion stakes, with its quilted jackets worn by celebrities including Lily Allen, Sienna Miller and Catherine Zeta-Jones.
Such celebrity endorsements helped the company to increase its turnover from £68m to £74m last year, with the company now on target to increase this by another 10% when it reports on its 2010 performance in October next year.
Privately owned J Barbour and Sons said it was also performing well in America, and said that the growing popularity of its shirts and knitwear range should see its US sales increase from £9.6m to £12.8m this year.
The firm said it expects its South Shields-based manufacturing division to break even after it recorded a loss last year following its separation from the main business.
The manufacturing division, which trades under the name of J Barbour and Sons Manufacturing, has been struggling to make a profit lately following the hike in the price of cotton, which is the main material used in the company’s range of clothing, including its iconic waxed jackets.
The company, which recorded a fall in overall pre-tax profit from £12.9m to £10.1m last year, said it hoped to get its manufacturing operations back on track with the help of growing demand for its products and expected to benefit from the current cold snap affecting much of the UK.
However, the firm said that its move into more fashion-led areas of the market was the main source of growth.
Managing director Steve Buck said: “We have seen strong sales over the last couple of years, with our clothing proving fashionable as well as practical.
“However, it is our international sales, particularly in the US, that are showing the most growth, which should help to increase our sales well beyond 10% by the end of the year.”
The company is now looking to increase its international presence in the new year, having just opened it fourth US store in New York, in addition to a new store in the Spitalfields area of London.
With shops in 20 countries, the firm believes it is well placed to take advantage of the global upturn and said it was hoping to bolster its manufacturing operations by taking on extra staff in South Shields.
Mr Buck said: “The popularity of our clothing means that we have been able to supply a lot of work for our manufacturing staff.
“We would like to add the numbers at this facility in South Shields but have found it difficult to attract people as they seem to have been put off by the decline of clothing manufacture elsewhere.”
