AllSaints returns to profit growth in first half of FY27 after tariff disruptions

British contemporary fashion group AllSaints has reported a recovery in its profitability for the first half of financial year 2027, surpassing levels achieved during its record financial year 2025. The London-based company, which also owns US menswear label John Varvatos, announced its trading update for the 26 weeks ended August 1, 2026, alongside audited results for the 52 weeks ended January 31, 2026.

Group revenue for the first half of FY27 rose 6.7 percent year-on-year (YoY) and 1.4 percent against the first half of FY25. On a constant currency basis, the AllSaints brand recorded a 7.5 percent YoY revenue rise, while John Varvatos generated 4.3 percent YoY growth.

EBITDA before operating exceptional items reached 14 million pounds in the half. Gross margin increased by 110 basis points to 64.8 percent, while net cash stood at 16.4 million pounds at the close of the period.

“Demand for our brands remains strong and resilient, and we are pleased with the first half performance in our current financial year,” said Peter Wood, CEO of AllSaints. “Both AllSaints and John Varvatos have returned to growth, and profitability is ahead of the equivalent period in FY25, our record year”.

Digital and international channels lead first-half momentum

Digital trading drove top-line performance during the first half of FY27, with overall e-commerce revenue up 17 percent YoY. Revenue through the flagship website AllSaints.com climbed over 20 percent, supported by stronger site traffic.

Wholesale, franchise, and travel retail operations grew 8 percent YoY and 13 percent compared to the first half of FY25, driven by wholesale demand across North American department stores. Combined retail and digital revenue in North America rose 13 percent YoY, confirming the market as the group’s strongest region. Continental Europe registered 14 percent YoY revenue growth and expanded over 50 percent against the first half of FY25, supported by clean inventory levels moving into the autumn/winter 2026 (AW26) season.

Tariff changes weigh on FY26 full-year earnings

The recovery follows an operationally demanding FY26 period, marked by shifts in the US tariff framework. Because the US represents the company's largest market, tariff alterations caused inventory bottlenecks during peak trading periods, preventing the business from fully meeting product demand.

Full-year group revenue for FY26 contracted 6.6 percent to 412 million pounds, down from 441.3 million pounds in FY25. Brand sales for AllSaints decreased 7.2 percent to 349.8 million pounds, while John Varvatos sales dropped 3 percent to 62.4 million pounds. Pre-operating exceptional EBITDA fell to 46.1 million pounds compared to 69.5 million pounds in FY25, and gross margin declined 200 basis points to 63.2 percent.

Despite these logistical constraints, the group retained a debt-free balance sheet with year-end net cash of 31.7 million pounds and an undrawn revolving credit facility of 50 million pounds. Management confirmed that supply-chain disruptions experienced during FY26 have since been resolved.

Strategic restructuring and store network expansion

The turnaround has been supported by several executive appointments over the past 12 months. Sean Trend joined as chief financial officer from British online retailer Asos in February 2026, while Nichole Strydom joined from German e-commerce platform Zalando as chief merchant.

Under chief creative officer Aaron Esh, who was appointed in November 2025, AllSaints unveiled a refreshed brand identity in August 2026, accompanied by a redesigned e-commerce platform and an editorial portal titled ‘AllSaints World’.

Physical expansion continued alongside digital investments. The group opened pop-up stores in Soho, New York, and Boston in 2026. These followed nine brick and mortar openings across the UK during 2025, including St Pancras International and Battersea Power Station in London, alongside locations in Shenzhen, Atlanta, Seoul, and Taipei.

John Varvatos also inaugurated a flagship on Greene Street in SoHo, New York, in September 2025 to mark the menswear brand's 25th anniversary.