Hawes & Curtis: Profit continues to fall at Dragons’ Den star’s brand
Profit at Hawes & Curtis, the retailer owned by Dragons’ Den star Touker Suleyman, has shrunk for a second consecutive year despite rising sales.
The London-headquartered fashion brand has posted a pre-tax profit of £3.7m for 2024, new accounts filed with Companies House show.
That figure compares to the £4.7m it reported for 2023 and £7.8m in 2022.
However, the new results also show that the firm’s turnover increased during its latest 12 months from £43.8m to £46.7m.
Hawes & Curtis said its like-for-like sales increased by 8.7 per cent while its total online sales jumped by 18 per cent.
Those figures compare to 1.5 per cent and 3.3 per cent respectively from 2023.
However, the company said that its gross profit margin decreased by 1.1 per cent in the 12 months due to cost increases.
Hawes & Curtis added that expenses had also risen by 10.4 per cent due to higher marketing costs to drive online sales and increased salary costs from growth in employee headcount and the impact of the National Living Wage.
The business said Touker Suleyman had expected its profit to fall as a result and that he expects the profitability to continue in the coming year.
In the UK, Hawes & Curtis’ turnover increased from £36.4m to £36.9m. In Europe its sales went from £2.1m to £2.9 and from £5.2m to £6.9m in the rest of the world.
Hawes & Curtis eyes USA growth
A statement signed off by the board said: “Although the trading continues [were expected] to be difficult due to cost-of-living factors, the demand for the company’s products range continues at an increased level for both channels – stores and online.
“Hence the group strategy is to continue to invest online and open stores in key strategic locations with suitable terms.
“Given this, the management expect they will be able to grow the sales and maintain its profitability in the coming year.
“The external commercial environment is expected to remain competitive and challenging for all retailers in the UK given the current retail trading environment, continuous pressures from Brexit, the war in Ukraine and recent instability in the Middle East.”
During the year, the company’s headcount increased from 242 to 262 while its wage bill rose from £8.4m to £9.6m.
Hawes & Curtis added: “Further, the group will continue to invest in its online business to capitalise on the opportunities available within both the domestic and overseas markets, concentrating on the United States of America and other growth markets.”
Touker Suleyman firm makes just £3,000 profit
Hawes & Curtis was bought by Touker Suleyman, who has been on Dragons’ Den since 2015, in 2001.
He also owns fashion label Ghost, which he acquired in 2008 after the collapse of its previous owner KCAJ.
Suleyman has also invested in motorcycle and cycling brand Tru-Tension, boat shoe retailer Docks Rio, online advertising company Intelligent Futures, AI firm Personify XP and handbag maker Huxley & Cox.
The results for Hawes & Curtis come after City PM reported in June that another fashion brand owned by Suleyman made a profit of just £3,000 as it returned to the black in 2024.
The company behind Low Profile posted the pre-tax profit after falling to a loss of £2.6m in 2023.
Accounts filed with Companies House also showed that Suleyman’s group ended the year with a turnover of £8.8m, down from the £13.5m it achieved in the prior 12 months.
The business said that “given the economic climate”, the directors made a provision of £778,000 against the receivables from related parties which resulted in the pre-tax profit figure.