Sales at Pepe Jeans London were down 44 per cent to GBP2.8 million for the year ended March 31 2003.

Pre-tax losses rose from GBP25,000 to GBP1,1m for the same period. UK managing director Terry Pearman stated the restructuring of the business, including the opening of standalone stores and culling of wholesale accounts to move the brand upmarket, had affected sales and profits. He added that he expected Pepe UK to return to profitability in March 2005.