Joules says latest lockdown could dent revenues by up to £18m

(Sharecast News) - AIM-listed fashion brand Joules warned on Thursday that the latest Covid-19 lockdown could dent revenues by up to £18m as it reported a slump in sales over the Christmas period.
In an update for the seven weeks to 3 January, Joules said total store sales slid by 58% amid the closure of non-essential stores and due to reduced footfall as and when stores were able to remain open.

During the periods that stores were able to trade, revenue was 23% lower compared to the corresponding prior year periods, reflecting lower overall footfall trends, in particular over the last two weeks of the period, it said.

Total retail sales through the group's websites, including sales through the Friends of Joules digital marketplace, were up 66% year-on-year, driven by traffic growth and improved conversion rates across digital platforms.

Joules, known for its colourful wellies, also said that if the current lockdown restrictions remain in place until 1 April, it could take a hit to revenues of between £14m and £18m. However, it expects the adverse impact of the lockdown to be partially mitigated in the full financial year to 30 May 2021 thanks to a better-than-expected sales and profit performance in the seven months of trading up to 3 January and a strong online performance. It also highlighted the ongoing benefits from cost reduction activities, including head office costs and lease renegotiations.

Chief executive officer Nick Jones said: "We are pleased with the continued strong performance delivered across our digital channels during the Christmas trading period and are encouraged by the increasing customer awareness of, and demand for, the Joules brand.

"Whilst the latest round of restrictions on store retail across the UK present a further challenge for the retail sector as we enter 2021, we remain very confident that Joules, as a highly relevant, digital-led brand with an engaged and growing customer base and healthy balance sheet, is well positioned to navigate these challenges."