Luxury interior design and furnishings group, Sanderson Design Group PLC, has reported a decline in half year sales.
According to its latest trading update for the six months ended 31 July 2024, total group sales fell 11% to £50.5m from £56.7m in 2023.
UK brand product sales were down 14% to £16.7m from £19.5m, while US sales rose 4% to £11.1m from £10.7m. Northern Europe revenues were down 6% to £4.8m from £5.1m, as were sales in the rest of the world, down 10% to £4.5m from £5m.
Manufacturing sales increased 1% to £17.2m from £17.1m, while Licensing sales fell 41% to £4.1m from £6.9m.
Commenting on its performance, Sanderson Design Group said: “The Company’s trading update on 27 June 2024 stated that, owing to a deterioration in trading conditions in the UK, brand product sales in May and June had impacted Group turnover in the current financial year.
“Since then, trading has showed some signs of improvement in July with brand product sales up 6% at constant currency compared with July last year. As a result, total brand product sales in the six-month period to 31 July 2024 were down 7% in constant currency, an improvement compared with being down 9% at the time of the June trading update and driven by North America. The Company continues to trade in line with the Board’s expectations for the current financial year, as revised at the time of the June trading update.
“As previously stated, UK brand product revenue in the first half was impacted by the challenges in the UK market, which represented approximately 45% of total brand product revenue. The strategic focus on North America continues to deliver sales growth and the pipeline of potential contract orders in the USA for the second half year remains strong.
“Within the brands portfolio, Sanderson has reacted positively to the recent strategic emphasis on driving the brand’s growth. Sales of the brand are up strongly in North America and in Northern Europe. Last year’s launch of the Disney Home x Sanderson collection is selling well, and the more recent Giles Deacon capsule collection is sampling strongly, particularly in the USA.
“Third-party manufacturing at £9.3 million was 2% lower than the same period last year, primarily reflecting reduced demand for repeat orders in the subdued UK consumer environment.
“Licensing revenue declined to £4.1 million, compared with £6.9 million in the same period last year when two major licensing deals, with NEXT and Sainsbury’s, led to accelerated income of £4.9 million in H1 FY2024. Accelerated income of £2.7 million in the first half this year reflects the signing of new licensees along with renewals and extensions.
“New licensees include Zara Home with Morris & Co. for a capsule bedding collection launching in September, underlining the continuing appeal of the Morris & Co. brand for licensed product. Other new licensees include Swyft Home for the Morris & Co. brand on sofas and other furniture.
“New licences also include an agreement with John Lewis Partnership for the Sanderson brand, covering a wide range of John Lewis branded homewares, and a Morris & Co. agreement with Pottery Barn Kids, part of US retailer Williams Sonoma, for a wide range of children’s homewares and other products.
“Major licence renewals in the half year include window coverings company Blinds 2go and rugmaker Brink & Campman along with other renewals including Swan Mill Group, for cards, stationery and gifting, and Fulton umbrellas.”
