Even after 54 years at the helm of his namesake brand, Sir Paul Smith is not slowing down.
At a time when many brands are moving more business online, Sir Smith is doubling down on building his business with a comprehensive U.S. expansion plan focused on growing both the label’s wholesale presence and owned store footprint.
In fact, stores are central to Sir Smith’s plans. What began as one small, 9-square meter shop in Nottingham, England in 1970, has grown to 130 shops with locations in over 60 countries.
In an exclusive interview with FN late last month at his SoHo flagship in New York, the British designer admitted that he still works at his Mayfair, London store every Saturday.
“I love working in the store because you learn so much just in one afternoon,” Sir Smith said as he escorted a customer to a fitting room just before sitting down with FN. “Just recently I helped a woman visiting from Oslo who turned out to be the boss of Norway’s national museums. I’ve also met quite a few architects, interior designers and car collectors while on the shop floor.”
It’s this passion for the customer experience that has led to a new three-year U.S. retail expansion plan, which kicked off last fall with the completed renovation of the brand’s iconic Melrose Ave. flagship in Los Angeles.
Since opening in 2005, the Instagram-worthy bright pink exterior has been a major tourist attraction, with some 400 people a day stopping to take photos of the exterior. The renovation of the shop marked the first time substantial updates were made to the interior space since its opening.
The updated store at 8221 Melrose now features an enhanced suiting and evening offering, a selection of runway looks and exclusive styles. The shop also got an upgrade to its VIP dressing and studio services, with an expanded lounge and the addition of a private entrance. According to Sir Smith, sales at the location have increased 21 percent over last year.
Next up in its three-year plan, the company will be relocating its San Francisco location in Union Square to Jackson Square in September. “We’ve been in the same location for 15 years, and this new store in Jackson Square is a more relevant neighborhood for us and our growing customer base,” Sir Smith said.
The retail plan also includes looking at new locations while leveraging data from e-commerce and wholesale performance to bring the brand to new communities. Currently, Sir Smith noted that the company has sights set on new NYC locations, Miami, Dallas and Chicago.
This new store opening strategy also comes with an enhanced focus on the brand’s wholesale business in North America.
According to Sir Smith, the company’s wholesale business has increased in North America by 27 percent for the spring/summer 2024 season. “In the last few years, we’ve grown with existing partners and key department stores like Bloomingdale’s and Nordstrom,” the designer said. “We also started to expand with specialty stores as well, which I think is really good.”
The brand expanded its relationship with Nordstrom this spring with the opening of the Paul Smith Clubhouse at the retailer’s NYC men’s store. Open through April 30, the takeover features cocktails and bites in addition to apparel, all inspired by the U.K.-based designer’s mantra of “classic with a twist.”
And while stores are certainly important to the business, e-commerce is also a focus. So far, e-commerce sales year-to-date are up 24 percent in North America, Sir Smith said. This is due to the American consumer shopping more frequently as well as growing commerce partnerships, he added.
By category, ready-to-wear is still the brand’s bread and butter. In recent seasons, the British fashion company has made subtle changes to its designs, putting a larger focus on core essentials and iconic products, while also relaunching made-to-measure services in its SoHo and Melrose stores and ramping up more casual weekend styles.
But when it comes to footwear, the brand is still growing. According to Sir Smith, shoe sales in North America increased 17 percent in fiscal 2023 over the last two years, with online sales in the region growing 28 percent in the fall 2023 season. Year-to-date online footwear sales in North America are up 29 percent for the spring 2024 collection. What’s more, 15 percent of all global footwear sales in the company come from North America, Sir Smith added.
“Most of our shoes are made in a family owned and operated factory in Tuscany alongside the likes of Gucci, Prada and other luxury labels,” Sir Smith said. “Our customer’s come to us for color, and that’s something we like to do, add wearable color moments to all of our designs – even in our footwear,” he added.
The founder and designer added that while sneakers are still relevant in his merchandise mix, he’s noticed a shift into more dress and formal styles. Loafers are especially hot at the moment, he said.
And speaking of Tuscany, Sir Smith is set to make his return to menswear trade fair Pitti Uomo in June. Announced on Tuesday, the designer will open the fair with a special presentation showcasing his spring/summer 2025 collection on June 11 in the heart of Florence. According to Sir Smith, he was one of the first guest designers to be invited to show at Pitti back in 1993.
But ultimately, the designer is excited about the company’s U.S. strategy moving forward. “We have massive potential here in the States,” the designer said. “We are definitely underpenetrated here, especially given how long I’ve been doing business in the market. Our customers appreciate the brand, or sensibility to color and our overall brand DNA.”
These expansion plans come after the company reported another year of growth in the fiscal year ended June 30, 2023. According to a Jan. 7 filing with Companies House, Paul Smith Limited reported revenue for the year increased 3.9 percent to 152.6 million pounds ($192.9 million based on current exchange), up from 146.9 million pounds in 2022. However, the company said it saw an operating loss in the year of 11.6 million pounds, up from 7.5 million pounds in 2022, due to inflationary pressures.
In the filing, the company wrote that revenue has increased to pre-pandemic levels, but the cost of doing business has increased. “The business has recovered strongly, but in common with other retailers, continues to face challenges including the impact of rising inflation and low consumer confidence,” the filing stated.
Looking ahead, the company said in the filing that it expects an overall 3 percent increase in fiscal year 2024 sales when compared to fiscal 2023, and an 11 percent increase in fiscal 2025 compared to 2023. When compared to pre-pandemic fiscal 2019, this equates to a 5 percent increase in fiscal 2024 and a 14 percent increase in fiscal 2025.
