Brexit, a double edge sword for Hackett

London - Hackett London has shared mixed views on how Brexit might affect its sales in the coming months. If at first the upscale menswear label warned on the negative effects that the UK’s exit from the EU, now it reveals weak pound has turned out to be a boon for its business.

The British label, founded in 1979 from a stall in Portobello Road, said earlier this week that a surge in tourists taking advantage of the weaker pound since the Brexit vote had led to greater spending in its central London stores.

That helped sales last month to show an increase from December 2015, reported the ‘Evening Standard’. Nevertheless, the fashion brand registered turnover fall of 2.4 percent in the UK and Ireland, closing at 107.4 million pounds in the year to March, 31.

Heavy investment in new stores and the shadow of a worse-than-expected Brexit burden Hackett

In the past months, Hackett leaped into the red, posting 8.4 million pounds’ worth of losses in the UK and Ireland. This compares to last year’s profit of 949,000 pounds. Heavy investment in new stores and the aftermaths of Brexit were argued by the retailer to explain this slide.

On the upside, global sales rose 5.8 percent to 151 million pounds.

Hackett remains ambitious in terms of global expansion, as it has confirmed its plans to keep expanding its international footprint with more store openings this year. The chain currently has 113 shops and 55 concessions globally.

Back in July, soon after Britons cast their votes regarding their staying part of the European Union, Jeremy Hackett said: “The Brexit has not suspended any of our plans to continue our global expansion.”

Although firstly seen as a big threat to ‘Made in Britain’ garments – higher production costs, labour-associated costs and presumably costlier export taxes – Brexit might bring new opportunities for those labels capable of capitalising on the British fashion heritage and savoir faire.

In late summer, Hackett introduced a collection of Made in London coats and has started remaking shirts, ties and accessories in England. “It lends credibility to our label,” says founder Jeremy Hackett in an interview with the ‘Financial Times’. “The more global we become, the more I believe that our customers expect and appreciate it.”

Photo credits: Hackett London, Facebook