Hush Homewear Shifts to Profitability Amidst Market Challenges

Hush Homewear has reported a challenging financial year ending in late March 2025, continuing a trend of difficult performances from previous periods. Despite a decrease in overall revenue, the company highlighted improvements in profitability, signalling a potential shift in its business model.

Turnover for the year reached £45.1 million, a substantial 14% drop from the £52.4 million recorded in the prior year. Hush Homewear attributes this decline to both the ongoing contraction of the UK premium womenswear market – experiencing a double-digit decrease – and a deliberate strategic decision to prioritize full-price sales over maximizing short-term volume. This approach involved careful buy planning and enhanced stock management.

The company’s focus on full-price trading yielded positive results in gross margin, which increased to 32% from 29.2% the previous year. This improvement is attributed to reduced inventory levels, down 5% overall, and a “healthier full-price sales mix.” Hush Homewear views this as evidence of progress towards a more profitable and brand-enhancing trading strategy.

Despite the improved gross margin, Hush Homewear remained loss-making for the year, although losses were significantly reduced. The operating loss narrowed from £7.9 million to £4.2 million, while EBITDA improved from a loss of £5.1 million to £2.3 million. The net loss also decreased, from £7.7 million to £4.1 million.

During the reporting period, Hush Homewear underwent a capital restructure, alleviating certain debt obligations with additional financial support from shareholders to facilitate growth initiatives. The company also bolstered its leadership team, appointing Philip Mountford (formerly of Hunkemoller, Moss and Versace) as Chair, Jill Stanton (with experience at M&S, Gap and Nike) as a Non-Executive Director, and Rebecca Scott (previously at Sephora/FeelUnique and Halfords) as CFO.

Key investment initiatives included joining the Brands at M&S program towards the end of the reporting period. While the initial impact was potentially limited by the widely publicized cyberattack that disrupted M&S’s online operations, this partnership is expected to be a significant growth driver in the future. Additionally, Hush Homewear expanded its physical presence by opening four new concessions with two new partners, increasing customer reach across the UK.

Further demonstrating its commitment to responsible business practices, Hush Homewear achieved certified B-Corp status in September 2024. This certification recognizes the company’s adherence to high standards of social and environmental performance, accountability, and transparency.

Trading in the first six months of the current financial year, ending in March, has reportedly been in line with expectations. The company continues to prioritize full-price sales and gross margin improvement, noting stronger sell-through of new-season products across all channels and increased customer acquisition and repeat purchase rates.

Hush Homewear is actively exploring several local and international growth opportunities and remains confident in its medium-term potential. The company’s strategic focus on profitability, brand building, and responsible business practices positions it for future success despite the current challenging market conditions.