Joules beats revenue expectations

Clothing retailer Joules has reported a revenue increase of 4 per cent, beating analyst expectations to hit approximately £199 million for its financial year.

Joules attributed the performance to strong e-commerce sales and its £9 million February acquisition of digital-led garden and outdoor furniture retailer Garden Trading.

Joules’ own websites, which include the Friends of Joules online marketplace, grew their revenues approximately 48 per cent year-on-year while Garden Trading’s revenues were also 78 per cent higher year-on-year.

The results came despite sales in its High Street stores dropping by 41 per cent year-on-year, and its wholesale sales also declining approximately 17 per cent.
The retailer said it expects to report pre-tax profits between £5.5 million to £6.5 million.

During the financial year, Joules also opened three new stores at Center Parcs’ Sherwood, Whinfell, and Elveden locations.

“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,” said chief executive at Joules at Nick Jones. “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 per cent 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.”

He added: “As a result of the strength of the Joules brand and the increasing diversification of the group’s digital-led business model, we believe that the group is very well positioned to continue to deliver its ambitious growth plans.”

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