Joules upgrades profit expectations following ‘strong’ sales

The fashion retailer said that “strong” online sales and stores rebounding “ahead of management’s expectations” since their reopening on April 12 would push profitability ahead of previous forecasts. 

Analysts had previously expected pre-tax profit before exceptional items to come in at £4.1m on sales of £187m.

Joules said ecommerce sales through its own websites jumped around 50% in the 11 months to May 2, compared with 47% during the first half of its financial year. 

The retailer also reported “strong growth momentum” on its Friends of Joules online marketplace as it increased the range of products available from third-party brands.

Joules added that sales in its stores during the four weeks since reopening came in ahead of the same period in 2019, prior to the pandemic.   

The business also announced the opening of three new locations, as well as the relocation of two existing stores.

Coming back from a difficult 12 months

Joules added that Garden Trading, the business it acquired in February, grew sales 85% year on year during the first three months following the deal.   

Joules boss Nick Jones said: “Our digital proposition continues to go from strength to strength and we have been very pleased with the performance of our retail stores since their reopening.

“This has been a great testament to the growing appeal of the Joules brand, the attractive lifestyle location of our store portfolio and the hard work and dedication of our colleagues across the business during this time.

“Although the past 12 months have been incredibly challenging for the retail sector, I truly believe that Joules is now in an even stronger position than ever before.

“We have an increasingly digital-led business, more diversified income streams and a broader product proposition that is highly relevant to our customers’ lifestyles.”