Joules swings to a loss as coronavirus hammers sales

The fashion retailer recorded a loss before tax of £2.0m to the full year ending May 31, compared with a £12.9m profit the previous year.

Revenue also declined by 12.5% to £190.8m due to the impacts of coronavirus, as well as a stock availability issue reported over the Christmas period.

Joules has estimated that the revenue impact of coronavirus was around £31m.

Both retail and wholesale revenue declined sharply during the period, down 21.4% and 25.3% respectively. At its lowest point, wholesale demand was down 75% in the final quarter.

Ecommerce sales grew 11% on Joules’ own website, with ecommerce representing 57% of retail sales for the year, up from 49.5% last year.

Since May 31, the retailer reported a 70% increase in online demand year-on-year for the same period. 

Chief executive Nick Jones 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. 

“We have further strengthened our flexible ‘Total Retail’ model; enhanced our UK and US supply chain operations to support our growth plans; and launched Friends of Joules, an exciting new digital marketplace.

“Whilst the retail sector will continue to face challenging trading conditions over the coming months, 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.”