Jaeger’s losses persist despite boost in salesComments Off on Jaeger’s losses persist despite boost in sales
The problems facing Jon Moulton’s struggling fashion brand Jaeger were laid bare as the latest results showed the company barely shrank its stubborn losses, despite improved sales.
Moulton’s Better Capital is already looking for a buyer for Jaeger, having appointed turnaround specialists AlixPartners, seen its chief executive quit and is preparing to pull the retailer out of Regent Street for the first time in 80 years next year.
The latest results filed with Companies House show a company putting sales over profits and relying heavily on discount events.
For the year to the end of February, sales rose 6% to £84.2 million. However, the retailer hardly made a dent in pre-tax losses, which were £15.4 million, down just £400,000 from a year earlier.
The company blamed unseasonably warm weather in September and October 2014 and also revealed sales of dresses were particularly badly hit, down 15%, although outerwear and knitwear was up 20% and 9% respectively.
Gross margins fell 2% because of excess stock and Jaeger offering more discounts. There was better news online, with sales up 42%.
Former boss Colin Henry unexpectedly quit in September amid suggestions that he clashed with Moulton’s team over the direction of the business.
Henry is said to have wanted to move away from mass discounting.