Australian billionaire Andrew Forrest's fashion empire posts $11.5 million loss

Australian billionaire Andrew Forrest's fashion business has reported an annual loss of $11.5 million, as a major valuation reduction at hatmaker Akubra weighs on the performance of the holding company behind two of Australia's best-known clothing brands.

Percy Street, owned by Forrest and his wife Nicola through their investment group Tattarang, recorded a loss of $11.5 million for the 2025–26 financial year, compared with $1.9 million in the previous year. The result came despite an increase in annual sales, highlighting the financial pressures facing the family's expanding fashion business.

The company's revenue rose to $340 million from $320 million, while earnings before interest, tax, depreciation and amortisation increased to $47.1 million from $34.6 million.

However, the improved operating performance was offset by a $16.6 million reduction in Akubra's intangible asset value. The write-down contributed significantly to the wider loss recorded by Percy Street.

Akubra, known for its traditional Australian felt hats, has been adjusting its retail strategy by reducing its distribution network and placing greater emphasis on flagship stores and online sales. The company has not publicly explained the reasons behind the changes.

Forrest and Nicola acquired the 147-year-old hatmaker through Tattarang in 2023, purchasing it from the Keir family, which had controlled the business for generations. The acquisition expanded their presence in Australia's fashion and consumer goods market.

The couple also own R.M. Williams, the Australian bootmaker they acquired in 2020 from a private equity fund backed by French luxury group LVMH. Together, the two brands form the core of Percy Street's fashion portfolio.

The latest financial figures also show that loans extended by the Forrests to Percy Street increased to $294 million from $278 million, reflecting the substantial capital the billionaire family continues to commit to the business.

Forrest, whose wealth is largely derived from mining giant Fortescue, has built a diversified investment portfolio through Tattarang, with interests spanning resources, agriculture, property, technology and consumer businesses.

His fashion investments represent a different side of his business activities, with the family seeking to develop established Australian brands while expanding their commercial reach.

Forrest's fashion investments represent a different side of his business activities. The billionaire has also pursued major investments across Africa through Fortescue, including mining and green energy projects. His African ambitions are explored in Inside Australian billionaire Andrew Forrest’s high-stakes Africa gamble: one win, many hurdles.