Fiskars UK, despite achieving robust sales at renowned retailers Harrods and Selfridges, reported a pre-tax loss of £1.4 million in 2023.
- This marks a significant shift from the previous year’s pre-tax profit of £11.5 million.
- The company’s turnover also experienced a decline, dropping from £33.7 million to £29.5 million.
- Ongoing inflation and energy costs, coupled with extensive internal restructuring, have been cited as major challenges.
- Efforts to attract new audiences through strategic marketing collaborations and visitor attraction development are ongoing.
Fiskars UK, headquartered in Stoke-on-Trent and the owner of prominent brands such as Waterford, Royal Doulton, and Royal Albert, reported a pre-tax loss of £1.4 million for the year 2023. Despite achieving strong sales figures at two of the UK’s most prestigious department stores, Harrods and Selfridges, the financial results mark a sharp departure from the pre-tax profit of £11.5 million recorded in 2022. Turnover for the same period also declined from £33.7 million to £29.5 million, as detailed in the company’s recent filing with Companies House.
The company attributed these financial challenges to a combination of external economic pressures and significant internal adjustments. The board’s statement highlighted that the cost of living crisis, marked by rising inflation and energy expenses, dampened consumer spending and adversely affected factory efficiencies. Key internal changes included a major restructuring of the sales organisation to focus on fewer but stronger account partners, leading to cost savings and better margin control through revised pricing strategies and enhanced trade portal usage.
To mitigate these challenges, Fiskars UK has been pursuing novel approaches to reach new customers. This includes innovative marketing tie-ups, such as the Wedgwood Web3 initiative launched at the Victoria and Albert Museum in London, as well as collaborations with Charles Jeffery Loverly and Palace. Such initiatives aim to expand Wedgwood’s appeal beyond its traditional customer base.
Moreover, the company has been working to enhance its visitor attraction offering. Development efforts at their Barlaston site have successfully returned revenue levels to pre-pandemic figures, despite the yet-to-recover international tourist numbers. Recent engagements with Japanese and Chinese tourism bodies signal potential future growth in this area. Additionally, the management of House of Waterford and World of Wedgwood has been consolidated to leverage synergies, optimising operational efficiencies and strategic outcomes.
The reported improvement in in-store sales at Harrods and Selfridges is largely attributed to the partial recovery of international visitor numbers to the UK, particularly to London. The ongoing reorganisation of teams at these locations is expected to further enhance performance and contribute to long-term financial stability.
Fiskars UK is actively navigating economic headwinds through strategic partnerships and organisational restructuring to secure a stable financial future.
