Jojo Maman Bébé positive about trading with Next despite loss of £672,000.
Jojo Maman Bébé has said it is feeling optimistic about trading on Next’s online platform, despite falling to a loss before tax of £672,350 during the seven months to January 2023.
The mother and baby retailer said that early trading with Next has been “positive”, with the platform expected to be a “significant area for growth” in the coming years.
During the seven-month period, Jojo Maman Bébé recorded a revenue of £47.1m, down from £70.9m in the 12 months to the end of June 2022.
The retailer’s gross profit margin fell to 55.7%, compared to 57.9% in the previous full-year period, as it looked to improve its cash balance and reduce stock holding through increased markdowns.
It added that overall turnover had “remained consistent” with the equivalent period in the previous year, however trading remained tough amid low consumer confidence.
The loss of £672,350, compared with a profit of £2.1m in the previous 12-month period, was due to “a provision of onerous leases totalling £1.4m”.
Jojo Maman Bébé was purchased by Next along with a number of other investors in April 2022, with the retail giant controlling 44% of its shares. The company’s founder, Laura Tenison, stepped away from the business after nearly 30 years and was replaced as CEO by Gwynn Milligan, who had joined the retailer in 2017 as commercial director.