Versace: UK sales slashed again as profit almost wiped out
Sales at the UK arm of fashion house Versace have been slashed by a fifth for a second consecutive year as the downturn in luxury spending continues.
The division has reported a turnover of £15.2m for the 12 months to 31 March, 2025, new accounts filed with Companies House have revealed.
The latest total is down from the £19.1m it posted for the prior year and the £23.8m for the period before that.
Versace’s UK turnover is the lowest it has reported since the £8.8m it posted for 2021. For that year, it made a pre-tax loss of £1.1m.
The brand’s pre-tax profit has also been on the slide since the year to March 2022 when it totalled £615,970.
In the 12 months to March 2023, it fell to £314,862, £112,895 in the following year and now to just £36,269.
In March it was announced that Donatella Versace was to step down as creative director at the fashion house.
She had been in the role since 1997 following the murder of her brother, Gianni.
Donatella Versace has been succeeded by Dario Vitale.
That news came ahead of Prada agreeing to buy Versace for $1.36bn (£1.06bn) in April.
Versace had previously been owned by Capri Holdings whose brands include Jimmy Choo and Michael Kors.
Versace closes UK stores
A statement signed off by the board said: “This year’s sales record a significant decrease of 21 per cent (2024: 19 per cent) following the trend of [the] luxury sector and the other companies of the group.
“In fiscal yer 2025, the decrease in sales is indeed attributed to a combination of reduced global demand for luxury goods and a broader decline in UK retail sales.
“This is partially due to increased cost pressures from inflation and higher wages: factors like rising utility and energy costs and a broader economic uncertainty are impacting consumer’s confidence and spending habits.
“Furthermore, considering the ongoing conflict in Ukraine due to the Russian invasion, which was joined in the second half of 2023 by the crisis in the Middle East, impacts on the regional and global economy are still uncertain and difficult to assess in terms of duration and severity.
“The company does not operate in Russia, Ukraine or the Middle East and consequently the directors do not expect this to have an adverse impact on the company.”
Versace added: “Despite this and considering the level of competition in the UK retail sector, the group continues to consider the UK market as a profitable business.”
It also said: “The company has a strong and solvent balance sheet.
“However, the strength of the balance sheet is dependent on continued demand for the company product that has reduced both in FY24 and FY25.
“Despite the negative trend of the luxury market, in the opinion of the directors, Versace UK has established a sound financial base from which it can expand its future trading activities.”
Versace added that it is “confident” that actions it has taken will “bring sales back to a more profitable level in the next years”.
Such actions have included “closing any low profitable stores”.
Luxury retail sales on the slide
Versace is far from the only luxury retail brand to suffer falling sales in the UK.
Pandora recently revealed that its turnover in this country fell from £448m to £441.3m in 2024 while its pre-tax profit was slated from £61.1m to £14.9m.
At the time, the division added that it expected “UK consumers’ discretionary spending and general rates of consumption will continue to come under pressure over the short to medium term which cold have a negative impact on future growth”.
The UK arm of Hugo Boss, which counts Mike Ashley’s Frasers Group as a major shareholder, also posted lower sales and profit for 2024.
The London-headquartered division of the German group reported a pre-tax profit of £9m for the year, down from the £16.8m it achieved in 2023 and £30.4m in 2022.
The brand’s turnover also declined from £391.6m to £377m in 2024. Hugo Boss’ turnover had stood at £402.4m in 2022.
It’s was also a similar story for the UK division of Christian Dior in 2024.
The London-based division’s revenue fell from £32.4m to £280m in the year while its pre-tax profit was also cut from £46.6m to £27.6m over the same period.
Its latest pre-tax profit figure also compares to the £60m it achieved in 2022.
Meanwhile, the sales at the UK arm of Louis Vuitton were slashed by almost £90m as its profit tumbled during 2024.
The fashion powerhouse reported sales of £488.2m for its latest financial year, down from the £575.2m it achieved in 2023.
Its pre-tax profit also decreased from £132.1m to £84.3m over the same period.
This was the first fall in revenue for Louis Vuitton’s UK arm since its sales went from £483.3m to £371.7m in 2020.
In April, the UK arm of luxury fashion brand Michael Kors revealed plans to lower its prices after suffering a significant hit to its sales.
The division’s revenue took a 20 per cent hit in the year to 30 March 2025, as it closed stores and it felt the impact of the cost-of-living crisis.
Michael Kors permanently closed shops in Newcastle, Milton Keyes and Manchester as well as a concession store in Harvey Nichols in London.
The company added that its prices are also expected to decrease “in the foreseeable future” in order to “better meet consumers demand and counter competitors’ strategies on the market”.