(Sharecast News) - Joules lifted its profit outlook for 2022 on Tuesday as it said it has extended its banking facilities.
The lifestyle retailer said trading in the final weeks of the year was consistent with the trends outlined in its update in May. However, thanks to additional cost reductions, it now expects full-year adjusted profit before tax and adjusting items to be slightly ahead of current market expectations for a loss of £1.5m.
Joules said the trends outlined in the previous update have also continued for the first six weeks of FY23, with retail sales growth of 8.5% year-on-year. Gross margins have also remained under significant pressure with consumer appetite weighted towards mark downs amidst a heavily promotional environment.
"The group is making good progress on its plans to improve profitability by simplifying the business and optimising the cost base," it said. "This includes implementing the group's previously disclosed plans to reduce its global wholesale accounts to focus on long-term profitable partnerships, shorten product lead times, and diversify the group's ethically sourced supplier base."
The retailer also said it has received credit approval for a further £5m headroom on its borrowing facilities with Barclays until November 2022 to support working capital requirements over the forthcoming seasonal borrowing peak.
"Whilst the group will continue to manage cash resources carefully, the board expects that the group has sufficient liquidity to manage its working capital requirements over this time including, in the event that it was utilised, repayment of the extended facilities in November 2022."
