Britain’s “queen of pottery” Emma Bridgewater has suffered a near £1.4m loss as her company was forced to heavily discount crockery in the face of fierce online competition.
The Stoke-on-Trent group, founded by eponymous designer Emma Bridgewater, swung to the loss after making a £1.1m profit in the previous year.
Intense competition for homewares during the traditional peak summer season prompted sharper online price reductions, which hit sales growth.
Soaring raw materials prices and higher energy costs to keep its Stoke-on-Trent factory in Hanley whirring also took a toll on profits.
Sales rose 9pc to £36.2m in the year to May 2023, compared with £33.1m a year earlier, latest accounts showed.
However, it was not enough to offset a near-20pc increase in the cost of production to £21m and a 15pc increase in staff and administrative costs to £16m, which pushed the group into the red.
To offset the downturn, the company has recently laid off dozens of staff from its 480-strong workforce.
It cut 40 jobs last summer and moved to a short-time working pattern of four days per week for two and a half months at the factory.
A further 36 jobs were cut in February and the group underwent another two and a half months of four-day weeks for part-time and full time staff.
The group is now planning to review its level of pottery stocks until 2025 to prevent heavier discounting.