Fairfax & Favor sales, profits drop, but category expansion could drive growth

Fairfax & Favour saw lower sales and profits in the year to late March 2025, although the comparison period had benefitted from being a 13-month one rather than 12 months this time.

The company sells footwear, accessories and outerwear with a focus on a rural lifestyle. Its turnover declined to £31.18 million from £36.11 million in the previous period. However, while the latest number was also below its 2023 figure, it was higher than the £28.88 million it had made in 2022.

EBITDA for the company was £1.395 million this time compared to £3.056 million last time. Its EBITDA had been higher in both 2023 and 2022.

Profit before tax this time was (£0.692 million compared to £2.474 million in the previous 13-month period while net profit was £0.717 million, down from £1.839 million last time.

The company, which achieved B-Corp accreditation during the year, said it was the first leather footwear brand in the UK to achieve the award.

Other developments in the year included several major milestone projects linked to its long-term strategic objectives. These included the incorporation of a US subsidiary to support increasing demand from customers based in America. This helped it achieve US revenue growth of 16%.

It also opened a further three UK stores in December 2024, taking its estate to nine independent locations with new stores helping to grow its direct retail revenue by 11%.

Plus it also entered the pre-owned channel and said it made significant progress during the year in the delivery of an app and loyalty scheme. They eventually launched in July 2025.

So why did its turnover fall this time more than could be accounted for by the previous period having had an extra month? The company said underlying trading in the core business throughout the period was difficult due to multiple ongoing macroeconomic effects leading to lower than forecast revenues. In fact, revenues and core online trading were down 10%.

But it sees these challenges as short term and it continues to invest in growth of the business.

Also that growth should come through its development of outerwear and other clothing, expanding it beyond its original position as a footwear label.

It has also been focusing on operating efficiency and delivered several significant IT projects during the year.