Joules upbeat despite full year loss
Joules has swung to a pre-tax loss of £2 million in the 53 weeks to 31 May compared to a profit of £12.9 million in the previous year.
Group revenue decreased by 12.5% to £190.8 million following the impact of the Covid-19 pandemic and an ecommerce stock availability issue over the Christmas trading period.
While its ecommerce channel performed well with revenue up 11% in the year, store revenue dropped by 21.4%, although the decline was much lower at 8% in the first nine months pre-Covid-19.
Meanwhile, wholesale revenue fell by around 75% in the retailer’s final quarter as wholesale customers across the world closed their operations in response to the pandemic.
Nick Jones, Joules chief executive, said: “Whilst the group’s financial results for FY20 were impacted by challenging external trading conditions in the UK throughout the year; the stock availability issue that, as previously reported, impacted our ecommerce sales over the Christmas trading period; as well as material Covid-19-related disruption during the final quarter, I am very pleased with the continued progress we have made against our long-term strategic goals.”
Joules said its trading performance has been ahead of management’s expectations so far in the new financial year
Looking ahead, Jones added: “I believe that Joules is very well positioned to navigate both the existing and potential further Covid-19-related challenges and continue to invest in targeted growth opportunities. The Joules brand’s awareness and health metrics have never been stronger, and I firmly believe that, underpinned by our strong brand purpose, Joules is more relevant than ever before.”
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