Luxury interior design and furnishings group, Sanderson Design Group PLC, has reported a decline in half year sales but positive momentum in the USA.

According to its half year trading update for the six months ended 31 July 2025, total sales were in line with board expectations at £48.3m, down slightly by 4% from £50.5m in 2024.

UK sales were down 9% to £15.1m from £16.7m, while USA revenues rose 1% to £11.2m from £11.1m. Sales in the EU fell 10% to £4.3m from £4.8m, while sales from the rest of the world were down 10% to £4.1m from £4.6m.

Manufacturing revenues slipped 16% to £14.5m from £1.2m, although licensing sales rose 6% to £4.4m from £4.1m.

“The previously announced restructuring at our factories has resulted in a strong recovery in manufacturing’s financial performance and we continue to expect manufacturing to achieve break-even, or slightly better, for the current financial year,” the group said.

“The strategic focus on North America continues to deliver sales growth with progress in the first half being driven by contract orders. The heritage brands, Morris & Co. and Sanderson, continue to perform well in the USA and the re-energised Harlequin brand is performing strongly.

“Our Morris & Co. direct-to-consumer site launched in the USA in March 2025 and has performed ahead of expectations, which is encouraging for the upcoming launch of direct-to-consumer sites for the Sanderson and Harlequin brands.

“The Highgrove by Sanderson collection, whose retail launch was in May 2025, has been very well received internationally, with requests for samples running at unprecedented levels for the brand.”

First half accelerated income was £2.4m (H1 FY25: £2.7m), reflecting the signing of new licensees, renewals and extensions.

Looking ahead, the company remains focused on the growth opportunity in North America and on strategic cost-saving initiatives to align the group with the current demand environment, particularly in the UK, and position the group for future growth.

Through a new cost-saving initiative, the group expects to save approximately £1m on an annualised basis via further reduced central overhead costs. The group’s expectations for the full year remain unchanged.