FAMOUS Hawick brand Pringle of Scotland has racked up losses of more than £9.5million in the last year, according to an annual report.
Kenneth Fang
New accounts filed at Companies House show that the iconic brand's annual t
urnover has fallen to just under £19.5million from £25.7 million – although bosses have said that the figures represent an important year of investment for the label's "long-term" and "global" development.
Since its acquisition in 2000 from Dawson, Hong Kong textiles tycoon Kenneth Fang has transformed the label's golf image into a global fashion house favoured by the likes of David Beckham, Madonna and models Sophie Dahl and Jodie Kidd. Autumn/Winter 2006 was the first season overseen by current creative director Clare Waight Keller, and the company says the Pringle of Scotland Collection has further strengthened the brand's presence with the luxury good consumer.
It stated: "Newly-won wholesale customers include some of the world's premier retailers." But although the company has also revealed plans to open more retail outlets, as top-line sales at its two flagship London stores in Sloane Street and New Bond Street increase year on year, it has admitted that losses are likely to continue in the "short term".
The company said: "The group continues to invest in the long-term development of the Pringle brand and business on a global basis. All such costs are expensed, and this is the principal driver of the losses recorded in the current year.
"Given that investment, the directors are not expecting to report operating profits in the short term but are satisfied that the development of the brand and of the business is progressing in line with their long-term strategic objectives."
And to complement the new range, the company has also invested in marketing, public relations, creative professionals and photographers.
Although overall employee numbers have declined by 44 to 266, which includes 11 redundancies from Hawick's Glebe Mill in December, writing in the annual report, Fang's son Douglas, who runs the business, said: "World-class creative professionals and photographers have been retained to complete the full package. The Pringle of Scotland brand is now well placed to reach a global audience."
Pringle – which currently sells in 11 countries around the world including the USA, Japan and the United Arab Emirates – is to open a new store in Hong Kong in October, while future plans also include an outlet in New York.
