Joules full year profit set to be slightly ahead of expectations
Joules has said its pre-tax adjusted profit before adjusting items is set to be slightly ahead of current market expectations in the year to 29 May 2022.
The lifestyle clothing brand said its performance during the final weeks of the period was consistent with the trends outlined by the company on 4 May when it said trading had become challenging due to the cost of living crisis.
Giving an update on the first six weeks of the new financial year, Joules said retail sales grew by 8.5% year-on-year. However, its gross margins have remained under significant pressure as shoppers focus more on buying discounted items.
Joules also revealed that it is making good progress on plans to improve profitability by simplifying the business and optimising its cost base. This includes reducing its global wholesale accounts to focus on long-term profitable partnerships, shortening product lead times, and diversifying its ethically sourced supplier base.
As at 26 June, the group had a net debt of £17.7 million which gave £15 million headroom within its current banking facilities. The company said it has now received credit approval for a further £5 million headroom on its borrowing facilities with Barclays Bank until November 2022 to support working capital requirements over its forthcoming seasonal borrowing peak.
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