An endorsement by Hollywood star and frequent Co Donegal visitor Sarah Jessica Parker helped the family-owned luxury Magee clothing brand to “strong sales demand in its retail sector” in 2023.
Accounts for Donegal Bay Group Ltd show, however, that despite the strong retail performance, increased costs contributed to pretax profits at the Magee group falling by 65 per cent from €1.7 million to €603,432 last year due to other factors.
In July 2023, the brand enjoyed global publicity from the Sex and The City star posting an image of her just-purchased Magee pink tweed coat to her 9.5 million followers on social media.
Magee said that the €575 coat began selling out after the Sarah Jessica Parker star posted an image of it online.
Consolidated accounts for the Co Donegal firm behind the brand, Donegal Bay Group Ltd show that profits decreased as revenues declined marginally from €14.2 million to €13.95 million last year.
In a note with the accounts, the directors said that the group “experienced strong sales demand in its retail sector”.
Why switching your mortgage rate can save you a lot of money (especially if you are green)
However, the note said that there was a levelling out of sales in the wholesale and weaving business following the post-Covid-19 surge in 2022.
“The group saw strong sales in its Magee 1866 retail stores in Donegal Town, Dublin (Magee of South Anne Street and Arnotts) and magee1866.com,” said Magee chief executive Rosy Temple on Friday.
Part of the fifth family generation to run the brand, Ms Temple said: “Rising business costs had an impact on profit. National and international demand continues to grow for Magee 1866 lifestyle collections across men, women, home interiors and accessories which feature unique natural fibre fabrics, designed and woven in the weaving mill in Donegal.”
The accounts said that the group was “committed in its continuance of driving an environmentally sustainable approach to manufacturing and all business activities”.
The group’s cost of sales increased from €6.85 million to €6.96 million as overheads rose from €5.6 million to €6.2 million.
Numbers employed, including executive directors, last year increased from 91 to 100 and staff costs rose from €3.3 million to €3.63 million.
Profits were hit last year as Covid-19 support of €79,046 in 2022 did not reoccur in 2023.
The profit last year takes account of non-cash depreciation costs of €243,148 which were up sharply on the non-cash depreciation costs of €147,562 in 2022.
At the end of December last, shareholder funds had increased to €7.39 million which included accumulated profits of €5.95 million.
Cash funds fell from €2.4 million to €1.69 million.
- Sign up for the Business Today newsletter and get the latest business news and commentary in your inbox every weekday morning
- Opt in to Business push alerts and have the best news, analysis and comment delivered directly to your phone
- Join The Irish Times on WhatsApp and stay up to date
- Our Inside Business podcast is published weekly – Find the latest episode here
