The Stoke-on-Trent-based company, founded by Emma Bridgewater, has reported a significant financial setback for the year ending May 2023, despite achieving a 9% increase in sales to £36.2 million. The brand, known for its distinctive homewares, saw its profitability severely impacted by rising production costs and staffing expenses.
Production costs surged by nearly 20%, reaching £21 million, while staffing and administrative expenses increased by 15% to £16 million. This dual financial pressure pushed the company into a £1.4 million loss for the period.
The homewares market’s fierce competition necessitated substantial online price reductions, particularly during the peak summer season, further constraining sales growth. Additionally, the company struggled with escalating raw material prices and increased energy costs required to sustain operations at its factory in Hanley, Stoke-on-Trent.
In response to these challenges, Emma Bridgewater implemented several cost-cutting measures. The company reduced its workforce by dozens, with 40 positions cut last summer and an additional 36 roles eliminated in February. The factory also adopted a four-day workweek for two and a half months on two separate occasions to mitigate financial strain.
To navigate future financial uncertainties, the company plans a comprehensive review of its pottery stock levels through 2025. This strategic move aims to prevent the need for substantial discounting and preserve profit margins.
Emma Bridgewater has carved out a niche in the market with quirky and colourful homewares, alongside brands like Cath Kidston and Boden. Notably, its Royal-themed ceramics have garnered attention, with a plaque designed by Bridgewater unveiled by the then-Prince of Wales during a 2017 visit to Stoke-on-Trent. Since its inception in 1985, the company has grown from a Covent Garden stall to one of the largest pottery makers in the UK, producing all its ceramics at the Victorian-era factory acquired in 1996. Despite the financial setbacks, the brand continues to enjoy a loyal customer base, with approximately 30,000 visitors touring the factory annually.
Despite a challenging financial year marked by a £1.4 million loss, Emma Bridgewater remains committed to navigating these difficulties through strategic cost-cutting and inventory management. The brand’s loyal following and distinctive product offerings provide a solid foundation for future recovery.
