Jamjoom Fashion plans to expand footprint of Nayomi, Mihyar in new locations: CEO

Stephen Holbrook Vice Chairman and CEO of Jamjoom Fashion

Stephen Holbrook, Vice Chairman and CEO of Jamjoom Fashion, said the company’s brands Nayomi and Mihyar have firmly established their presence in the market. Nayomi leads the women’s intimate apparel and nightwear segment, while Mihyar has become the first fully integrated national brand for men’s ready-to-wear thobes in Saudi Arabia.

In an interview with Argaam, Holbrook explained that the Kingdom’s fashion sector is entering a new growth phase. Studies forecast women’s intimate apparel spending to grow at a compound annual rate of 3.4% through 2029, while the share of ready-to-wear thobes is expected to expand to 50% from the current 45%, driven by rising incomes and population growth, particularly among women and youth.

The CEO noted that the IPO represents a full secondary offering on behalf of Kamal Osman Jamjoom Group, which will retain majority ownership to continue supporting the company’s journey. The current strategy, he added, focuses on expanding the retail footprint of Nayomi and Mihyar, while entering new locations through digital channels and an enhanced customer experience.

Holbrook highlighted that the company’s financial performance reflects the strength of its strategy, with revenues rising 14.3% year-on-year (YoY) in the first nine months of 2025 to SAR 540 million, and net profit growing 17% YoY. He affirmed that this momentum is sustainable, supported by the company’s unique business model.

Here are details of the interview:

Q: Why are you considering an IPO now? And why did you choose Saudi Exchange’s NOMU – Parallel Market and not the Main Market, given that based on the announced price range, you be considered a mid-cap stock?

A: We believe the timing is right. Over the past few years, we have built Jamjoom Fashion into a strong and focused fashion platform. Our flagship brand, Nayomi, is now the leader in women’s intimate apparel and nightwear in KSA, and its expansion into five other GCC countries has been impressive. And with Mihyar, we have created the first true “head-to-toe” national brand for Saudi men’s ready-to-wear thobes, and we are incredibly proud of its rapid growth – today it is the market leader in terms of store footprint and product variety.

Financially, we have also demonstrated consistent growth. Both our revenue and profits have increased steadily over the last two fiscal years, and in the 9-month period of our current financial year (October 2024 – June 2025), we delivered double-digit growth, with consistent quarter-on-quarter improvement compared to last year. So, we see the IPO as a natural next step in our journey. It is a chance to bring in new shareholders who share our passion for building great Saudi fashion brands and who can join us as we move into our next phase of growth.

As for NOMU, it is the right fit for where we are today. Jamjoom Fashion was only carved out of Kamal Osman Jamjoom Group less than three years ago, so we don’t yet meet the financial history requirements of the Main Market. But NOMU is designed for ambitious, fast-growing companies like ours. Also, we’re confident that the kind of shareholders we’ll attract here will be long-term partners who believe in our business, our potential, and most importantly, in our people, supported by a high Saudization rate.

Q: How do you plan to use the proceeds from the IPO?

A: This IPO is a 100% secondary offering, which means the proceeds will go to our majority shareholder, our parent company, Kamal Osman Jamjoom Group (KOJ). That said, we have a clear and ambitious growth strategy in place, and KOJ will remain the majority owner of the business.

We are focused on scaling up what we already do well. That includes expanding both Nayomi and Mihyar into locations and continuing to build on the strong brand equity we’ve developed over the years. We are also planning to expand Nayomi to new markets.

At the same time, we are investing heavily in the customer experience – both in-store and online. In our physical stores, we’re rolling out larger formats with a stronger focus on concepts designed to enrich the customer experience in-store. Online, we are planning to launch a new value-focused platform that taps into the growing demand for deals – such as limited-time offers, product bundles, and other smart ways to shop.

We're also using technology to personalize the customer journey across channels, making sure every touchpoint feels more relevant, more convenient, and ultimately drives better engagement and sales.

Q: Who are your competitors? What differentiates your business model from theirs?

A: Most of the names people know in our space are franchise operators or multi brand traders.  We are different: we create and own our brands end-to-end, or what we refer to as the “concept to shelf” model.

Jamjoom Fashion was carved out of Kamal Osman Jamjoom, a family group with 37 years of retail heritage in the KSA, so we understand the culture and the consumer better than an imported label ever will. In other words, we create apparel – from intimate women’s apparel to traditional Saudi thobes - in the region for the region   We have an exceptional team that design in house, we outsource production to best in class factories and run a “phydigital” model that captures shoppers online first – through content, social and live chats – and then steer them to our upgraded, experience‑led stores where conversion and basket size are higher. It’s the best of both worlds: digital reach with in-store economics. Also, we control pricing and marketing strategies and can innovate freely, adapting quickly to changing fashion trends and hybrid shopper preferences.   The benefits of our unique operating model are multiple. It gives us faster design cycles, tighter quality control, and – because we pay no franchise royalties – structurally higher margins.

Q: Financial performance for the first nine months of financial year 2025 has been good, what has driven the performance? Do you expect to sustain this momentum for the remainder of the year?

A: Our strong performance in the first nine months of 2025 – with revenues up 14.3% to SAR 540 million and net profit rising 17% year-on-year – reflects the successful execution of our strategy on multiple fronts. This also translated into a net profit margin of 17.4% for the period, compared with 17% in the same period last year, highlighting that we are not only growing in absolute terms but also delivering improved profitability.

We have upgraded both the quality and scale of our physical and digital footprint, including the rollout of digitally immersive store concepts, early gains from Mihyar’s expansion, and the launch of our third-generation e-commerce platform. At the same time, our brands are connecting more effectively with consumers through powerful digital and social engagement, while our investment in product innovation and customer-centric technology continues to drive both new customer acquisition and higher purchase frequency among loyal shoppers.

Looking ahead, we believe this momentum is sustainable. Our unique ‘concept to shelf’ model gives us pricing power and the ability to deliver greater value to our customers, while our agile technology stack and high-performing culture allow us to scale innovation quickly. Taken together, these factors give us confidence in maintaining our strong trajectory for the remainder of the year.

Q: What is the outlook for the industry in the mid-term to long-term? What is growth driven by?

A: Our core categories – women’s intimate apparel and men’s national wear – are proving resilient. Market studies show KSA spend on intimate apparel is still expected to grow c.3.4% CAGR through 2029, and ready-to-wear thobes are on track to reach 50% of the thobe market from roughly 45 % today as convenience trumps bespoke. This is driven by a young demographic, a growing population, and increased disposable income, especially amongst women. Offline retail remains dominant thanks to the region’s mall culture, but customers – most of whom are digital natives - want the convenience of online research before they buy, which plays to our hybrid model.

Q: What are your plans for expansion outside the Kingdom? Which markets will you prioritize, and what business models will you rely on?

A: Yes. For Nayomi, we will expand through a capital-light franchise model. Priority markets are ones that are culturally aligned to the Gulf, such as Asia Pacific, Eurasia, and wider MENA. We vet each country for consumer profile, tax regime, and the strength of potential local partners before signing a master franchise. Inside the Gulf, we will continue to open our own stores, leveraging long-standing mall operators and landlord relationships.

Q: How do you manage capital allocation priorities between expanding your store network and maintaining your dividend policy?

A: Our first call on cash is profitable store expansion and store upgrade capex – in other words, the “big to bigger” remodels. We then fund digital initiatives, such as AI-driven personalization and the launch of a value-led online outlet. While historically we have distributed dividends, we plan to maintain a healthy payout after growth capex needs are covered. Our low leverage gives us that added flexibility.

Q: What mechanisms do you adopt to maintain balanced inventory levels that ensure meeting demand while avoiding higher storage costs or excess unsold stock?

A: We run a two‑hub warehouse network – one facility in Jeddah and another in Dubai. These warehouses have over 4.5 million units of capacity and ship over 11.5 million items per year, so the product is never more than a short truck drive or next‑day flight from any store. That cuts lead times and ensures replenishment is quick.

We rely on our custom-built product lifecycle management (PLM) tool, Airtable PLM, plus data‑driven forecasting to tell us what needs to move where and when. Sales trends, seasonality, and promotion calendars flow straight into the ordering system, so inventory levels line up with real demand rather than guesswork.

We also keep a close watch on ageing: only about 15 % of our inventory is classed as “aged”, which is better than industry norms for fashion retail. Anything that starts to slow is provisioned methodically (25 % after year one, 100 % after year two), and we build clearance events into the merch calendar well in advance. That way, markdowns are well-planned and margins stay predictable.