Joules impacted by Omicron and supply chain disruption
Lifestyle fashion brand Joules has said sales in the nine weeks to 30 January were lower than expected with an uplift of 31% on the prior year and 19% on the corresponding period two years ago.
In a trading update, Joules said the performance was due to weaker than expected revenue in January, which was partially a result of the impact of the Omicron variant on footfall. Trade was also affected by delays to new stock arrivals due to supply chain challenges, which resulted in a lower full price sales mix.
In addition, the retailer’s wholesale revenue was lower than anticipated due to delayed stock and customer cancellations, and it was also impacted by higher costs particularly within its third party operated distribution centre.
Joules said it has taken a number of actions to simplify the business, reduce costs and improve margins and, as a result, it now expects trading for the balance of the year to recover in line with its previously stated expectations as footfall and its stock position improves.
Joules said pre-tax profit was also below expectations and that it now anticipates that full year adjusted pre-tax profit will be not less than £5 million compared to £6.1 million a year earlier.
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