Jigsaw swings to FY profit as it streamlines store estate

Jigsaw has swung to a profit in its latest fiscal year as it continued to recover from the pandemic.

In the year to January 29, the British fashion retailer reported EBITDA of 2.8 million pounds compared to a loss of 18.7 million pounds a year earlier, while its operating profit came in at 1.2 million pounds, up from 21 million pounds in the prior year.

Its gross profit margin improved to 59 percent from 54 percent.

Meanwhile, it made revenue of 47.7 million pounds in the period, a 23.2 percent increase year-over year.

Store closures

The improvement in profitability and revenue came as the business streamlined its physical store estate.

The company, which was founded in 1970, was hit hard during the pandemic as its stores were closed and consumers sought more casual looks during lockdowns.

Jigsaw ended the year with 43 own-stores, having started the period with 56. The company said this is part of its strategy to rebuild its store portfolio, “focussing on key locations”.

It said its retail stores “outperformed expectations”, which “highlighted how important a physical presence is for Jigsaw”. It added that its e-commerce business “delivered strong growth throughout the period”.

Looking ahead, the company said it will continue to focus on its womenswear business, while also bolstering its digital capabilities and expanding its store portfolio. It said it will also restart its international expansion.