British lifestyle brand Joules has released a trading update for the Group’s retail channels during the seven weeks to 3 January 2021.
Total retail sales through Joules’ websites, including sales through the Friends of Joules digital marketplace, increased 66% year-on-year; an increase driven by traffic growth and improved conversion rates across the Group’s digital platforms.
Meanwhile, total store sales declined by 58% during the Period, reflecting the enforced closures of non-essential shops and reduced footfall. During the periods stores were able to trade, revenue was 23% lower in comparison to the corresponding prior-year periods.
Total retail revenue through Joules’ own-branded retail channels during the Period was up by 0.3% against the prior year, with the growth in Joules e-commerce sales more than offsetting the decline from stores.
The Group’s brand awareness and brand health metrics show continued improvements during the Period. Equally, the active customer base continues to grow, with over 1.5 million active customers at the end of the Period.
On 3 January 2021, the Group had net cash of £13 million and total liquidity headroom of £63 million.
Following the national lockdown and closure of non-essential retail stores, all of the Group’s stores are currently closed. Whilst the duration of these restrictions is uncertain, if they continue through to 1 April 2021, potential loss in Group revenues is forecast to be between £14 to £18 million. This is due to the closure of its stores, the cancellation of country shows, plus disruption to wholesale partners.
The Board anticipates the potential adverse sales impact from this new period of non-essential retail closures will be partially mitigated in the full financial year to 30 May 2021 due to several reasons.
These include better than expected sales and profit performance in the seven months of trading up to 3 January 2021; continued strong momentum of Joules digital platform sales; plus ongoing benefits from cost reduction activities, including head office costs and lease renegotiations.
The Group intends to provide its next update with its Interim Results on 28 January 2021.
Commenting is Nick Jones, CEO of Joules. “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. This has been supported by our Friends of Joules digital marketplace, which added a great range of products and gifting options for customers throughout the Christmas trading period.
“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. As a result, we remain as excited as ever by our long-term growth prospects.”
