After surviving an expensive outsourcing fiasco, Jack Wills is back in the black
Due to problems with the outsourcing of its distribution centre, Jack wills had been suffering with heavy losses. The co-founder Peter Williams who previously stepped down in 2012, teamed up with private equity firm BlueGem Capital Partners, and returned to the helm in 2015 to bring the business back to profitability.
Since the return of Peter Williams, the group made an operating profit of £730,000 in the year to January. With sales rising four per cent to £142.4m from £137.4m the previous year. The firm said it had absorbed £1.7m of costs associated with the BlueGem acquisition.
Williams said ‘Momentum has very much returned to the business and this is evident from the overall improvement in, and return to, profitability.’
Jack Wills thanked ongoing efficiency programmes for a lot of this profit transformation into 2017/18, with Williams commenting ‘This momentum of profit improvement is continuing through the current financial year, helped by our efficiency programmes and our deliberate strategy to reduce promotional activity, which improved margin.’
The firm announced in May the opening of its first store in Germany, with plans for expansion continuing to grow.
With HSBC increasing the firms credit facility to £30m, Jack Wills secured £10m in funding for its international expansion over a year ago and now have 90 shops across the world.
Williams spoke about this, saying ‘Despite the tough consumer environment and focus on reducing promotions, revenue is up four per cent with our multi-channel model giving customers ultimate flexibility on how and where they engage with the brand. We are strengthening and growing our presence in the UK and overseas and today ship to a record 130 countries worldwide. We are working on a number of exciting initiatives and will open an additional 10 stores this year.’