British high-end leather goods and stationery business Smythson has published its financial results for the year to late March, reporting lower turnover but a significantly reduced loss.

Turnover dropped to £23.29 million (US$31.43 million) from £27.26 million (US$36.78 million) in the previous year. Gross profit also declined to £16.6 million (US$22.40 million) from £19.6 million (US$26.45 million).

Despite the slide in sales, the company’s loss for the period narrowed sharply. Smythson reported an operating loss of £283,000 (US$381,874) compared with a £5.9 million (US$7.96 million) loss a year earlier. Pre-tax and net losses both came in at £1.04 million (US$1.4 million), significantly improved from £6.63 million (US$8.95 million) previously.

The business said its performance was affected by broader economic volatility and ongoing uncertainty in global markets, particularly stemming from U.S. tariff concerns. Changing customer behaviour also saw digital sales underperform, even as physical retail achieved like-for-like growth.

Smythson’s corporate and wholesale channels also weakened, reflecting tighter spending among corporate clients and inventory caution among partners. The company said it remains focused on maintaining a healthier, more sustainable business while investing in marketing and improvements to its digital experience.