Portmeirion Group Reports H1 Sales Growth Despite US Tariff Disruption

Right, let’s dive into Portmeirion Group’s H1 2025 trading update. It’s a tale of resilience and strategic pivoting in the face of some significant headwinds, particularly across the pond. The headline? Group sales nudged upwards, which is no mean feat given the disruption.

The US Tariff Tango: Disruption & Damage Control

Undoubtedly, the star of this particular drama (or villain, depending on your perspective) was the unexpected imposition of additional US import tariffs right at the start of Q2. This hit Portmeirion where it hurts most: its largest and most profitable market. The result? A sharp 10.6% decline in North American sales for H1.

But management hasn’t been sitting idle. They’ve swung into action with a multi-pronged response:

• Supply Chain Shuffle: They’ve successfully managed production and shipments to get product into the US significantly earlier than usual, aiming to be fully stocked for the crucial peak Holiday/Christmas season.
• Strategic Retreat & Refocus: Crucially, they’ve cancelled certain low-margin Asian-sourced orders destined for the US (which would have been heavily tariffed). They’re also withdrawing or reducing supply to certain low-margin “value” retailers. The focus shifts to supporting partners who position their brands for sustainable, long-term growth.
• Accelerated Onshoring: The “Made in Stoke-on-Trent” initiative, originally slated for completion by 2027, is being accelerated. While UK manufacturing is higher cost, this move is a strategic investment to mitigate tariff impacts and bolster brand value internationally long-term. Expect a markedly lower volume of Asian-sourced product hitting US shores in FY25.
• Retail Expansion Continues: Showing confidence in their brands, they’re still opening new US retail spaces – an 8th Nambé store in Dallas and a Ceramics pop-up in New Jersey.

Mike Raybould (CEO) noted some “early signs that retailer confidence maybe returning” recently – a glimmer of hope, but the situation remains sensitive to macro/political uncertainty.

Where the Growth Bloomed: Beyond the US

Strip out the US chaos, and the picture brightens considerably. Excluding the US, Group sales grew a very healthy 10.8% at constant currency. The drivers were clear:

South Korea: Bouncing Back Strong

After a tough 2023/24 dealing with a post-COVID stock overhang, South Korea roared back with a 31.6% sales surge. New product innovation and successfully clearing that historic stock are credited. Management is confident this recovery trend will continue.