Joules benefits from strong online trading
Joules has said the strong trading momentum it reported in early November has continued over the Black Friday period with sales exceeding initial expectations.
The lifestyle brand said its performance continues to be driven by strong ecommerce growth with total online sales up 35% in the six months to 29 November. Ecommerce accounted more than 70% of the company’s retail revenue in the period as it benefited from a strong digital marketing capability, improvements to the online customer experience and the performance of its Friends of Joules online marketplace.
However, group revenue for the six month period fell by 15.3% to £94.5 million following the impact of enforced store closures and the cancellation of country shows across the UK during the Covid-19 pandemic. Total retail revenue was also down, dropping by 6% to £75.3 million.
Nick Jones, chief executive of Joules, said: “The strength of our digital proposition, the increased number of Joules customers and the growing appeal of the brand has meant that Joules has continued to trade well during the period, despite the impact of enforced store closures.
“We delivered a good Black Friday trading period through our online channel and our Friends of Joules digital marketplace continues to perform ahead of our expectations.
“We have strong momentum – particularly through our online channel – and a good stock position that underpins our confidence for the peak Christmas trading period. We have been pleased with the performance of our stores in England for the first few days since their re-opening in early December.”
Joules expects to report a pre-tax profit for the period of between £3.5 million and £4 million and said it remains confident that it will achieve its full year expectations.
Jones added: “The retail sector continues to face a number of near and medium-term challenges, including the ongoing impact of Covid-19 on our communities and economy as well as Brexit-related uncertainties. I have no doubt that Joules, underpinned by the strength of our brand and our flexible and scalable platform that now includes our Friends of Joules digital marketplace, is well positioned to be one of the long-term winners against this challenging backdrop.”
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