Joules trading ‘ahead of expectations’ despite overall sales decline

For the 26 weeks to November 29, Joules reported an overall revenue decline of 15% year on year to £95m as the retailer battled with enforced store closures throughout the UK and the cancellation of country show events.

During the period, the lifestyle brand said its trading hours were at approximately 60% of their typical trading time.

Total retail revenue also declined 6% to £75m compared with the same period last year due to store closures and lower footfall when stores were opened.

When comparing the period that Joules stores were open against last year, store sales were ahead of the board’s expectations and 17% lower year on year.

The retailer’s ecommerce channels fared much better, with total ecommerce sales up by 35% in the first half and revenue from Joules’ own ecommerce channels up by 45%. 

Online represented more than 70% of the group’s retail revenue for the six-month period.

Traffic to the Joules website was up 40%, while its active customer base now stands at 1.5 million.

The retailer also said it had seen positive trading throughout the Black Friday and Christmas period so far.

Chief executive Nick Jones said: “The strength of our digital proposition, the increased number of Joules customers and the growing appeal of the brand has meant that Joules has continued to trade well during the period, despite the impact of enforced store closures.

“We delivered a good Black Friday trading period through our online channel and our Friends of Joules digital marketplace continues to perform ahead of our expectations. 

“We have strong momentum – particularly through our online channel – and a good stock position that underpins our confidence for the peak Christmas trading period.  

“We have been pleased with the performance of our stores in England for the first few days since their reopening in early December.

“The retail sector continues to face a number of near- and medium-term challenges, including the ongoing impact of Covid-19 on our communities and economy as well as Brexit-related uncertainties. 

“I have no doubt that Joules, underpinned by the strength of our brand and our flexible and scalable platform that now includes our Friends of Joules digital marketplace, is well positioned to be one of the long-term winners against this challenging backdrop.”