Luxury interior design and furnishings group Sanderson Design Group (SDG ) announced during its Annual General Meeting that it continues to navigate the challenging UK consumer environment, however, strong performance in its licensing segment, including major deals with NEXT and Sainsbury's, has helped mitigate the impact on UK brand sales and manufacturing.
The company remains focused on the US market, which continues to trade positively. The recent successful launch of Morris & Co. outdoor performance fabrics in the US provides further growth opportunities.
Sanderson Design Group also noted improving conditions in European markets, particularly in the southern region, and highlighted the solid performance in the Middle East.
With a strong portfolio of brands, an exciting product pipeline, and a favorable business mix driven by licensing activities, the company is confident in meeting the board's expectations for the full year, maintaining a robust net cash position.
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In the US, Sanderson Design is continuing to build momentum following a strong year of trading in 2022. Product sales were up 6.3% during the year, with Clarke & Clarke delivering record performance of market sales in the US.
Operationally, Morris & Co's agreement with Williams Sonoma, signed in 2021, was the company’s first licensing agreement in the US and was extended in 2022 on initial success. Towards year-end, Sanderson Design announced a second agreement in the US with Ruggable, again through the Morris & Co. brand.
Despite the challenging UK consumer environment that Sanderson continued to contend with in 2023, with the consumer confidence index hitting a low of -45 in January, the most recent index rose by three points, which marked a rise for the fourth consecutive month. If consumer confidence continues to recover, this may bode well for trading in the second half of the year for Sanderson Design.
Sanderson Design said it plans to provide a trading update for the half-year ending on 31 July 2023 on 8 August 2023, so make sure to to stay up to date.