Joules boosted by strong online performance
Fashion lifestyle brand Joules has seen its full year revenue increase by 4% to around £199 million despite significant challenges posed by the Covid-19 pandemic.
In the year to 30 May, retail revenue rose by 9% year-on-year, mainly due to strong online sales. The company also benefited from a positive contribution from its recently acquired Garden Trading Company and the success of its Friends of Joules digital marketplace.
As a result of the performance, Joules now expects its pre-tax profit before exceptional items for the period to be in the range of £5.5 million to £6.5 million, which is slightly ahead of current market expectations.
Nick Jones, chief executive of Joules, said: “The impact of the coronavirus pandemic on the lives of consumers, the level of disruption and pace of change in the retail sector over the past 12 months has been truly unprecedented. I am delighted that, against this backdrop, Joules has been able to deliver a very solid financial performance and strong strategic progress. This outcome primarily reflects, firstly, the strength and relevance of the Joules brand to an increasing number of customers and, secondly, the increasing importance of our digital proposition both to customers and within our business model, with approximately 77% of our retail sales now generated online.”
Joules said its stores have performed ahead of management’s expectations since their re-opening after the third Covid-19 lockdown, with sales for the eight weeks since reopening ahead of the comparable period two years ago. Due to the enforced closures, full year store sales were approximately 41% down year-on-year.
Looking ahead, Jones said: “As we move into the new financial year, Joules is now a stronger and more diversified business than ever before. The continued success and growth of our Friends of Joules digital marketplace and our strengthened position in the home, garden and outdoor sector following the acquisition of Garden Trading means that we now offer significantly more products across more categories and provide our customers with more choice and reasons to shop with us. As a result of the strength of the Joules brand and the increasing diversification of the group’s digital-led business model, we believe that the Group is very well positioned to continue to deliver its ambitious growth plans.”
