Luke 1977 has filed its accounts for the year to the end of January 2024 with the company, which is the contemporary label founded by Saint Martins graduate Luke Roper, saying that its revenue fell 5.5% to £16.2 million during the year.

Operating profit for the company edged up marginally to £1.05 million from £1.03 million and both profit before tax and net profit were £1.04 million, up from £1.02 million.

In its summary of the year the mid-market menswear specialist said that the cost of living crisis and high interest rates continued to have an impact, although its overhead costs remained in line with the previous year and margins managed to improve by 2.8%. This was due to improvements implemented in the prior year relating to sourcing and stock deliveries.

And while inflation has undeniably become less of an issue now, potential conflict in the Middle East remains a threat both to prices and to the company’s supply chain, it said. 

The business has a fairly downbeat outlook as far as the economic backdrop is concerned and said it expects the current issues and their impact on the fashion sector to continue over the next two or three years. There are also challenges relating to climate issues ranging from the reduction of its carbon footprint to the use of recyclable materials.

But the board isn’t sitting back and letting it all happen and said it continues to be proactive, negotiating prices with its current supplier base and looking for cheap alternatives without compromising quality. It’s also exploring the use of more sustainable fabric, recyclable packaging and close-to-home suppliers.

And on the upside, it’s seeking growth opportunities in new product categories and new geographical markets, although it didn’t give any details about what that means in practice. Additionally it’s looking for suitable retail opportunities and e-commerce growth as part of a three-year plan.