JoJo Maman Bébé says NEXT will drive growth after reporting pre-tax loss

Maternity and baby clothing retailer JoJo Maman Bébé, in which NEXT owns a 44% stake, has reported a pre-tax loss of £672,350 for the seven months ending 31 January 2023.

The company blamed "tough" trading on consumer confidence due to rising household bills.

Online sales represented 52% of JoJo Maman Bébé's total business, slightly lower than the 55% in the prior year. The company saw a continued increase in retail sales as customers continued to return to the high street. For the seven-month period, turnover stood at £47.1 million compared to a turnover of £70.9 million for the 12 months to 30 June 2022.

Gross profit margin dropped to 55.7% (from 57.9%) driven by increased markdowns to reduce stock. EBITDA sat at 5.8% compared to 7.3% in the period prior.

Despite these results, the company is expecting positive trading via NEXT for sales growth looking ahead.

The financial report stated: "The investment by Foxford and Next provided an opportunity for the company to deliver an improved commercial proposition for the customer and benefit from the economies of scale of the Next UK wide distribution and store footprint. Furthermore, the shareholders' combined resources and expertise will support the company's growth ambitions both in the UK and overseas."

In April 2022, NEXT purchased a 44% stake in the company for an undisclosed sum. Laura Tenison, who founded the brand in 1993, stepped down from the business at the time.