Luxury is back! Barrie Knitwear profits up 140%

by DOUGLAS SHEPHERD

Hawick's high end cashmere knitwear business which produces luxurious garments for the Chanel fashion brand, saw its operating profit soar spectacularly in 2022 as the global economy recovered strongly following the damaging Covid-19 pandemic.

Barrie Knitwear, which employs more than 260 people in the Scottish Borders and Arbroath - the annual wage bill exceeds £6 million - enjoyed a 15% increase in turnover last year, up from £16.29 million to £18.83 million.

The much improved performance resulted in an operational profit of £1.453 million, 140% better than the respectable £604,000 figure for 2021.

These results come ten years after the Barrie brand, trade and assets were acquired from the ailing Dawson International Group to become 100% owned by Chanel. There had been a danger in 2012 that the Barrie operation and 170 local jobs could be lost with other Group businesses being liquidated.

The iconic fashion house saved the day by purchasing Barrie - founded in 1903 - in a £4.8 million deal with the Dawson administrators. 

In the 2022 annual report and accounts, managing director Jan Young explains the 15.6% upsurge in turnover was due to a recovery in the market after the initial impact of Covid-19. The increased operating profit was down to higher sales and improved efficiency.

According to the report: "The company manages the skills shortage risk by continually seeking to recruit and retain skilled people and by operating its own training school for key skill manufacturing operations. A network of reputable UK and EU sub-contractors is also being developed".

The majority of Barrie's output (£13.675 million of total turnover) ends up in France while UK sales were worth £1.150 million and in the case of the USA £438,000.

The report also states: "Following Russia's invasion of Ukraine, management took the decision to pause all operations with Russian customers. Whilst the geopolitical situation remains complex, the company's exposure in the Russian market is minimal".

Barrie says it is working with a company in Mongolia to establish an improved supply chain for cashmere fibre.

The Barrie Knitwear range currently includes an embellished sweater retailed by Harrods with a price tag of £1,540 while the Lyst website is advertising a women's green cashmere cardigan jacket for £1,700.67 (reduced from £1,994.78).

Meanwhile Chanel reported record sales in 2022, "reflecting the strength and uniqueness of the Chanel brand". There was strong growth across the three categories of Fashion, Fragrance & Beauty, and Watches & Fine Jewellery.

Total revenue of $17.2 billion last year compared to $15.6 billion in 2021. The Group's operating profit rose from $5.461 billion to $5.776 billion while Chanel's global workforce increased from 28,500 to 32,000.