Jigsaw is showing signs of improvement following strategic changes implemented to address recent profit declines.
- Sales for Jigsaw increased by 2.3% despite challenging market conditions impacting overall profitability.
- CEO Hash Ladha has spearheaded efforts to restructure the business and improve customer loyalty.
- The company has expanded its physical presence with new store openings and enhanced its online business.
- Jigsaw is optimistic about EBITDA recovery, supported by a solid store infrastructure and strong online growth.
In a recent disclosure, Jigsaw announced a rise in sales by £0.7 million, marking a 2.3% increase on a like-for-like basis for the year leading up to January 2024. However, the company also reported a decline in EBITDA to £0.7 million, attributed to tough market conditions that arose in the latter part of 2023. Previously, EBITDA had been £3.6 million in the preceding year ending January 2023.
The company remains optimistic about the financial future, citing a strong online business and a profitable store infrastructure as foundations for expected improvements in EBITDA over time. Management is keen to focus on strengthening customer loyalty, both in-store and online, and has made changes to its product and brand offerings to better capture its target market, resulting in positive customer feedback. Yet, it acknowledges the time required for these strategies to reflect in financial performance.
Under the leadership of CEO Hash Ladha, who took the helm in November 2023, Jigsaw initiated substantial restructuring across all facets of the organisation. This included refreshing the leadership team and aligning business costs with objectives. Ladha’s initiatives aim to build a resilient business model that not only retains existing customers but also attracts new ones.
During 2023, Jigsaw expanded its retail footprint by opening three new stores located at Battersea Power Station in London, Edinburgh, and Kingston in Surrey. Additionally, the international online business was relaunched, receiving favourable reactions from customers across various markets, further supporting Jigsaw’s growth ambitions.
Jigsaw anticipates a brighter financial outlook as it continues to implement strategic initiatives and adapt to market conditions.
