Luke 1977: UK’s economic woes to hit fashion industry for next three years

Menswear brand Luke 1977 has warned that the “current economic climate” will continue to impact on the fashion industry for the next two to three years.

The Oxfordshire-headquartered business said the fashion industry is also “experiencing challenges relating to climate control”, ranging from the reduction of carbon foot prints to the use of recyclable materials.

The update came within newly-filed accounts for Luke 1977’s latest financial year.

The results, published on Companies House, shows the brand’s turnover declined from £17.1m to £16.2m in the year to 31 January, 2024, while its pre-tax profit remained static at £1m.

Recession ‘remains a threat’ – Luke 1977

A statement signed off by the board said: “The cost-of-living crisis and high interest rate continues to have an impact.

“Overhead costs have remained inline with [the] previous year, however, margins have improved by 2.8 per cent.

“This is due to improvements implemented in the previous year relating to sourcing and stock deliveries.

“Inflation has fallen over the last two years to single digits but potential conflict in the Middle East remains a threat to inflation and supply chain.

“Although the risk of recession has receded, it remains a threat for now due to macro-economic factors.”

Luke 1977 added: “The board continues to be proactive, negotiating prices with the current supplier base and looking for cheaper alternatives without compromising quality.

“Similarly, the board is also exploring the use of sustainable fabric, use of recyclable packing and ‘close to home suppliers’.

“The group will continue to monitor the market closely, seek growth opportunities in new product categories, new customer accounts and new geographical markets.

“The board is of the opinion that the group is well placed to cope with the uncertainties and current market conditions.”