Fairfax & Favour Faces Sales Dip Despite Strategic Growth Moves

Fairfax & Favour, a brand specializing in footwear, accessories, and outerwear catering to a rural lifestyle, experienced a decline in both sales and profits for the year ending late March 2025. Turnover reached £31.18 million, a decrease from the £36.11 million reported in the prior period. It’s important to note that the previous period benefitted from a 13-month reporting cycle, compared to the standard 12 months this time. Despite the downturn, the £31.18 million figure surpasses the £28.88 million achieved in 2022, indicating fluctuating performance over recent years.

The company’s financial metrics reflect this challenging period. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) stood at £1.395 million, significantly lower than the £3.056 million recorded previously. Both 2023 and 2022 also saw higher EBITDA figures. Profit before tax registered a loss of (£0.692 million), down from £2.474 million in the 13-month period, while net profit decreased to £0.717 million from £1.839 million.

Despite the financial headwinds, Fairfax & Favour achieved notable milestones during the year. The company proudly announced its B-Corp accreditation, becoming the first UK leather footwear brand to receive this recognition, demonstrating a commitment to social and environmental responsibility. Strategic initiatives were also undertaken to bolster long-term growth, including the establishment of a US subsidiary to capitalize on increasing American customer demand, resulting in a 16% growth in US revenue.

Further expansion occurred within the UK market, with the opening of three new stores in December 2024, bringing the total number of independent retail locations to nine. These new stores contributed to an 11% increase in direct retail revenue. The brand also ventured into the pre-owned market and made substantial progress on the development and subsequent July 2025 launch of a new app and loyalty scheme.

The decline in turnover, exceeding what could be attributed solely to the shorter reporting period, is attributed to difficult underlying trading conditions. The company cites multiple macroeconomic effects as the primary driver of lower-than-forecast revenues, with both overall revenues and core online trading down 10%. However, Fairfax & Favour remains optimistic, viewing these challenges as temporary and continuing to invest in the business’s future.

A key element of this future growth strategy involves expanding beyond its core footwear offerings into outerwear and broader clothing lines. Simultaneously, the company is focused on improving operational efficiency, having implemented several significant IT projects throughout the year to support this goal.