Kilkenny Design returns to profit as revenues dip by 5%

Fashion and design retailer last year returned to an operating profit of €504,244, new accounts show

Kilkenny Design Group operates 17 bricks and mortar stores here, while the Wright Group operates Kilkenny cafes at Kilkenny Design shops on Nassau Street, Dublin; Kilkenny; Cobh Heritage Centre, Cork; and Shanagarry, Cork. File picture: Cathal Noonan

The Kilkenny Design Group, the Irish fashion and design retailer owned by the O’Gorman family, last year returned to an operating profit of €504,244 despite revenues dipping by 5%.

New consolidated accounts filed by Clydaville Holdings Ltd show the group recorded the operating profit of €504,244 after sustaining an operating loss of €865,603 in 2023 — a positive swing of €1.36m.

The group — which has its flagship store on Dublin’s Nassau Street — returned to profit as revenues fell by €1.7m, from €33.06m to €31.36m in the 12 months to January 28, 2024.

Kilkenny Design Group operates 17 bricks and mortar stores here, while the Wright Group operates Kilkenny cafes at Kilkenny Design shops on Nassau Street, Dublin; Kilkenny; Cobh Heritage Centre, Cork; and Shanagarry, Cork.

Store locations also include Killarney, Doughlas, Ennis, Galway, Trim, and Kildare Village.

Clydaville — which has its registered office in Killarney — recorded a pre-tax profit of €171,294 after various costs, including €125,230 in reorganisation costs — are taken into account.

Numbers employed last year reduced by 22%, decreasing by 64, from 283 to 219. Staff costs reduced from €9.67m to €8.25m.

The other costs include non-cash amortisation costs of €155,655, and net interest payable of €136,888.

The profits also take account of combined non-cash depreciation and amortisation costs of €1.07m. Directors’ pay declined from €770,062 to €580,825.

After incurring a corporation tax charge of €101,930, the group recorded a post-tax profit of €69,364.

In accounts signed off on July 31, the directors said “operating in an environment of economic volatility, Kilkenny Design faced headwinds that were beyond our control”.

They added “the ongoing global cost-of-living crisis added pressures on our cost structures, posing additional challenges to the performance of the business”.

They said the business “delivered a turnaround in the current year, returning to profitability compared to a loss in the prior year”, and that “the company successfully restructured its debt during the year, resulting in improved financial flexibility. As a result, the company is now well-positioned to meet its debt obligations as they fall due”.

"While the road ahead may continue to present uncertainties, the strategic decisions made by the management team have laid a foundation for sustained growth and resilience, which has highlighted the adaptability and strength of the Kilkenny Design team.”