Sunderland outdoor clothing company Berghaus has seen its losses widen after counting the cost of the global supply chain crisis and soaring distribution fees.
The business, which designs and makes outdoor clothing, footwear and accessories, has released financial results for 2021 which show a big jump in sales in both the UK and Europe. Turnover in the UK leapt over 26% to £63.8m, while in Europe the increase was over 42% to £6.3m. Overall, global turnover increased 27% from £55.3m to £70.2m.
However, the firm saw its operating loss grow from £1m to £4.4m on the back of supply chain issues, as well as a major increase in distribution costs. During 2021, Berghaus said it benefited from a strategy that began rolling out during the previous two years, which saw investments in its DACH business in Germany, Austria and Switzerland as well as a refresh of the brand’s overall identity and positioning in all markets. It is also placing a focus on product development in both specialist and outdoor lifestyle categories.
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It said it is also continuing to invest in its people, product and operations and sustainability programmes. Four new brand ambassadors also joined, to promote diversity and inclusivity in the outdoors. Meanwhile, Berghaus has introduced a number of initiatives to reduce the impact on the environment of its activities, which are summarised in the annual Berghaus Sustainability Report. In 2021, Berghaus also began the process of working towards B Corp certification.
Within the accounts, the company also highlighted how parent company Pentland Brands, including Berghaus, aims to donate surplus stock to those that need it most. In 2021, Pentland Brands donated over 106,000 products to a number of charity partners and organisations including InKind Direct, Oxfam, Sports Traider and Unitas. Where items cannot be donated, its recycling partner, First Mile, uses innovative recycling methods to transform our products so they can be re-used. To prevent products from ending up in landfill, over 185,000 products were recycled and 22,000 were used for energy.
The brand also redesigned its Extrem range in its first refresh since 2016. Designed for mountain activities in extreme conditions, and available from autumn 2022, Berghaus Extrem is distributed through specialist outdoor retail channels in the UK and Germany. Investments made in 2021 enabled Berghaus to go live with Extrem in September this year, and products in the range have already secured two major international industry awards.
Charlie Pym, Berghaus global brand director, said: “Despite complex global challenges that had an impact on Berghaus, 2021 was a good year for the business and brand. The strong growth that we achieved in all target markets was very encouraging, while we took decisive action to mitigate the impact of the supply chain crisis that affected the whole industry. Investments in projects such as Extrem will re-establish Berghaus as a leader in creating the best performance outdoor gear on the planet. The response to the new collection has been excellent, but that’s only one of many exciting initiatives that we will introduce over the coming years.”
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