Jack Wills back in the black after cutting promotions

Jack Wills made an operating profit of £730,000 in the year to January versus a loss of £13.8m the previous year, according to City AM.

Sales rose 4% to £142.4m from £137.4m.

The retailer, which earlier this calendar year reported a good Christmas and expansion in Germany, had formerly been hit by problems following the outsourcing of its distribution centre.

Founder Peter Williams returned to lead the business again in 2015, and went on to buy out Jack Wills with private equity house BlueGem, which also owns department store business Liberty.

Williams said: “Momentum has very much returned to the business and this is evident from the overall improvement in, and return to, profitability.

“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.

“Despite the tough consumer environment and focus on reducing promotions, revenue is up 4% with our multichannel 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.”