Joules interim profits slump despite improved e-commerce showing

(Sharecast News) - Lifestyle brand Joules said on Tuesday that interim profits looked set to decline despite posting an improved e-commerce performance.
Joules warned that pre-tax profits for the six months ended 29 November were expected to have more than halved to £3.5m-4.0m as the Covid-19 pandemic battered sales.

Revenues fell 15% to £94.0m, with storefront sales tumbling 46%. However, e-commerce sales surged 35%.

Gross margins also decreased 3% on the back of a heightened promotional spend.

Despite this, Joules said it was confident going into the peak Christmas trading period after seeing strong momentum, a good stock position and a solid performance from its stores in England after emerging from Downing Street's second mandated lockdown period, with the AIM-listed group adding that it still expects to deliver full-year results in line with guidance.

Chief executive Nick Jones said: "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."

As of 1005 GMT, Joules shares were down 6.76% at 158.50p.