Joules accesses extra financing as online sales outperform

Joules reported that it has completed agreement on a £15m increase in borrowing facilities following an equity raise of the same amount earlier this month.

The fashion retailer said that the increase in its revolving credit facility and share placing, combined with action it has taken with the help of partners such as suppliers and landlords to mitigate the impact of coronavirus, “has significantly strengthened Joules’ balance sheet” and given it “sufficient liquidity headroom to manage a Covid-19-related downside scenario and the resources to emerge relatively stronger from this unprecedented situation”.

Ecommerce accounts for about half of Joules’ retail sales. The retailer said: “Customer traffic and demand to Joules.com has been running ahead of the group’s revised expectations, set at the time of entering the UK government’s lockdown period, and we continue to see strong levels of customer engagement with the brand across our social media channels and with our digital marketplace.”

Joules chief executive Nick Jones said: “Our ecommerce sales over recent weeks continue to demonstrate the strength of the Joules brand and the loyalty of our customer base.

“We know that further challenging times are ahead, but we are confident that, with the continued support of our colleagues, customers and the wider Joules community of suppliers and partners, Joules is well positioned to manage these challenges.”