Joules profits ahead of expectations as reopened store sales thrive

The fashion and lifestyle retailer has recorded a 4% uplift in revenues to approximately £199m in the full year to May 30, despite “significant challenges” amid the coronavirus pandemic.

Joules upped its full-year profit guidance in May, and has now said it expects profit before tax and exceptional items to be ahead of market expectations, in the range of £5.5-£6.5m.

The retailer attributed this to its continued strengths online, including increased active customer numbers, as well as the positive outcome of the purchase of gardening specialists Garden Trading in February this year.

Joules recorded a 9% increase in retail sales year on year in total, with sales on its own-brand websites and its Friends of Joules marketplace up 48%.

The retailer also said its reopened stores had traded ahead of expectations after the most recent lockdown restrictions had lifted, with sales in the eight weeks since reopening ahead of 2019 comparables.

While store sales were down 41% year on year due to the enforced closures for roughly half of the period, Joules has seen footfall rebound due to pent-up demand and has even opened three new stores in Center Parcs locations.

Chief executive officer Nick Jones said: “The impact of the coronavirus pandemic on the lives of consumers, the level of disruption and pace of change in the retail sector over the past 12 months has been truly unprecedented.

“I am delighted that, against this backdrop, Joules has been able to deliver a very solid financial performance and strong strategic progress. 

“This outcome primarily reflects, firstly, the strength and relevance of the Joules brand to an increasing number of customers and, secondly, the increasing importance of our digital proposition both to customers and within our business model, with approximately 77% of our retail sales now generated online.

“As we move into the new financial year, Joules is now a stronger and more diversified business than ever before. The continued success and growth of our Friends of Joules digital marketplace and our strengthened position in the home, garden and outdoor sector following the acquisition of Garden Trading means that we now offer significantly more products across more categories, and provide our customers with more choice and reasons to shop with us.”