Jigsaw has reported a significant financial downturn, reversing from profit to loss.
- The fashion retailer saw pre-tax losses reach £3.6 million from a previous profit of £816,000.
- Investment in brand marketing and personnel did not yield the anticipated returns.
- Sales showed modest growth, increasing slightly from £56 million to £57 million.
- Collaborations and store expansions were highlighted despite market difficulties.
Jigsaw, the fashion retailer, announced a notable shift in its financial health over the past fiscal year. The company moved from a pre-tax profit of £816,000 to a loss of £3.6 million. This shift is attributed to investments in brand marketing and personnel that did not bring the expected financial returns, as detailed in a filing with Companies House.
Despite this downturn, Jigsaw’s sales reflected a slight increase from £56 million to £57 million over the 12 months leading to the end of January. However, EBITDA fell sharply to just £700,000 from £3.6 million, indicating the economic hurdles faced, particularly in the latter half of 2023.
The appointment of a new CEO, Hash Ladha, formerly of Oasis and Warehouse, marked a significant leadership change at Jigsaw following Beth Butterwick’s departure after three years. This transition comes at a time when the company is striving to navigate a challenging retail landscape.
Jigsaw has emphasized its strategic collaborations with brands such as Roksanda and Collagerie, which have been instrumental in expanding its brand reach. The company also noted the profitability of its store estate, with successful branch openings in Edinburgh and Battersea Power Station and refurbishments of existing locations.
Further expansion into the Irish market was achieved through a partnership with Brown Thomas, increasing Jigsaw’s presence in various concessions and online. These efforts underscore the retailer’s commitment to broadening its market footprint, even in challenging times.
Jigsaw’s recent financial results underscore the impact of challenging market conditions and strategic investments that did not meet expectations.
