John Smedley Implements Turnaround to Reverse Financial Losses

Luxury knitwear brand John Smedley is executing a turnaround strategy to reverse financial losses, including a 720,000 pound pre-tax loss for the year ending March 31, 2025. The losses were driven primarily by a decline in the Japanese yen, a currency critical to the brand as Japan accounts for half of its international trade.

To recover, the company pivoted toward direct European sales, an enhanced online presence, and the launch of a new diffusion line called JS. The brand also collaborated with actor Bill Nighy on two collections. These initiatives resulted in the first UK sales growth in over five years for the period ending March 2026. Managing Director Jess McGuire-Dudley reports that the business is now seeing profitable months as it recovers volume losses from the Japanese market.

To preserve its British manufacturing roots, the company invested over 4 million pounds in machinery in 2024. The brand has rejected buyout offers to prevent asset stripping, prioritizing the maintenance of its factories in Derbyshire and South Yorkshire. Board Director Robert Marsden-Smedley emphasizes the importance of acting as custodians of the business to ensure it is passed to the next generation in a strong state.