Joules swings to full year profit after strong online growth
Joules has swung to a full year profit after strong online growth more than compensated for the impact of enforced store closures during the coronavirus pandemic.
In the 52 weeks to 30 May, the company posted a pre-tax profit before exceptional costs of £6.1 million compared to a loss of £3.9 million in the same period in the previous year.
While revenue increased by 4.3% to £199 million in the period, online sales climbed by 48% to £122 million to account for 77% of retail revenue. However, store and country show sales fell to £36.6 million from a previous £63.2 million due to shops being closed for around six months due to Covid-19 restrictions. The impact of the pandemic was also felt across the the company’s wholesale business where revenue fell by 17% year-on-year.
Throughout the year, Joules’ active customer base continued to grow and now stands at nearly 1.7 million compared to 1.41 million in the prior year.
Nick Jones, Joules chief executive, said: “It is safe to say that FY21 was characterised by truly unprecedented trading conditions. Against this backdrop, the group delivered strong strategic progress, including growing our digital proposition, increasing our active customer base, and further diversifying as a leading lifestyle platform with the successful acquisition of Garden Trading and the continued expansion of Friends of Joules.”
The company said it has started the new financial year in a strong position due to sustained demand for the Joules brand and the attractive locations of its stores. The company’s home, garden and outdoor ranges, which are mainly sold under the Garden Trading brand, have also performed well.
Jones added: “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.”
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