Whistles Faces Challenges Despite Strategic Growth Moves

Whistles, the contemporary womenswear label owned by TFG London alongside Hobbs and Phase Eight, has released its financial results for the year ending late March 2025, revealing a mixed performance amidst ongoing economic challenges. Similar to Phase Eight, Whistles experienced declines in key financial metrics, though TFG notes positive directional movement across its brands.

Turnover for Whistles decreased to £57.7 million, down from £65.7 million the previous year. Adjusted EBITDA also saw a dip, falling from £5 million to £4.7 million. Operating profit decreased to £1.8 million from £2.5 million, and profit after tax was down to £0.5 million from £0.9 million, illustrating a consistent downward trend across all profitability measures.

Whistles operates through a multi-channel approach, encompassing its own retail stores, online sales, and concessions within department stores, both in the UK and internationally. Despite the “challenging economic backdrop” in the UK, TFG highlighted a “steady performance” and a growth in Whistles’ direct channel mix, increasing from 50% to 54.6% of total sales.

However, this growth in direct channels was offset by a significant 15% year-on-year decline in concession sales. This underperformance in concessions mirrors similar issues experienced by Hobbs and Phase Eight, suggesting a broader trend impacting TFG’s brands. The drop in concession sales, combined with a net closure of 14 stores (19 closed, 5 opened), contributed to the overall 12% decrease in turnover.

Despite the revenue decline, Whistles saw an improvement in its gross margin, rising from 67% to 69.9%. This positive development is attributed to the increased proportion of sales generated through direct channels. Distribution costs saw a slight increase, primarily due to a one-off warehouse relocation in March, while administrative expenses were reduced through cost control measures.

Looking ahead, Whistles has made several strategic moves aimed at future growth. In early March, the brand joined the ‘Brands at M&S’ platform, a significant partnership offering access to a much larger consumer base. While the initial months were impacted by a cyberattack affecting M&S, the long-term potential of this collaboration is considered highly beneficial.

Further bolstering its future prospects, Whistles appointed Jacqui Markham as its first-ever Creative Director in April. Markham brings a wealth of experience from leading brands including Topshop, Topman, ASOS, Urban Outfitters, Oasis, and Karen Millen. Product Director Camille Sullivan anticipates Markham will be “instrumental in driving both the brand and our product offering forward” as Whistles enters its next phase of growth.