Design company Kilkenny reports profit recovery amid challenges not self-imposed
Kilkenny Design Group Returns to Profitability Amidst Economic Challenges
In a significant turnaround, Irish fashion and design retailer Kilkenny Design Group has reported a return to profitability for the year ending January 28th, 2024. The company, which operates 17 bricks and mortar outlets in Ireland, including its flagship store on Dublin's Nassau Street, recorded an operating profit of €504,244, a marked improvement from an operating loss of €865,603 in the previous year.
The business's resurgence can be attributed to a series of strategic initiatives and cost-saving measures. One of the key details of this turnaround strategy was the restructuring of the company's debt, which enhanced financial resilience and positioned Kilkenny Design Group to meet upcoming debt obligations. In July 2025, the company refinanced a €2.48 million loan facility, further stabilizing its finances.
Another significant contributor to the improved profitability was a reduction in staff costs. The company decreased its workforce by 64 employees (22%), lowering staff costs significantly. This reduction, coupled with operational consolidation and reorganisation costs, reflected investments aimed at long-term sustainability.
Despite a 5% dip in revenue to €31.36 million, these measures led to a positive swing of €1.36 million in the operating profit of Kilkenny Design Group. The accounts also mention that the company is now well-positioned to meet its debt obligations as they fall due.
The directors acknowledge that the business operated in an environment of economic volatility, facing headwinds that were beyond the group's control. The ongoing global cost of living crisis added pressures on the cost structures of Kilkenny Design Group, posing additional challenges to the performance of the business.
Despite these challenges, Kilkenny Design Group's shareholder funds at the end of last year totalled €7.34 million. The company's successful restructuring efforts have created a foundation for resilience and future growth, laying the groundwork for continued success in the face of economic headwinds.
[1] Kilkenny Design Group Annual Report 2024 [2] Kilkenny Design Group Press Release, March 1st, 2025 [3] Kilkenny Design Group Financial Statements 2024 [4] Kilkenny Design Group Interim Report, July 15th, 2024
The strategic restructuring of Kilkenny Design Group's debt and refinancing a €2.48 million loan facility in July 2025 played a crucial role in enhancing the company's financial resilience within the volatile industry. Amidst the economic challenges, the retail business managed to improve its profitability, with a significant reduction in staff costs being another key factor.
