Joules, the British lifestyle group, has issued an update on trading for the financial year ended 30 May 2021. The Group is reporting revenue for the Period increased by 4% to approximately £199m (FY20: 190.8m). This is despite the significant challenges impacting the retail sector during the financial year.

This performance reflects the Group’s digital proposition and increasing active customer numbers. Also, the positive contribution from the acquisition of Garden Trading Company since February 2021. Profit before tax and exceptional items for the Period is anticipated to be in the range of £5.5m-£6.5m; slightly ahead of current market expectations.

Retail revenue, which includes ecommerce sales as well as the Group’s stores, increased 9% year on year. This was mainly due to strong sales growth through the Group’s own digital channels. Demand on Joules’ own websites, which includes the Friends of Joules online marketplace, has grown approximately 48% year on year.

The Group’s stores have also performed ahead of expectations since re-opening following the third national lockdown.

Sales for the eight weeks since reopening are ahead of the comparable period two years ago. Furthermore, the Group has three new stores at Center Parcs’ Sherwood, Whinfell and Elveden locations. This takes the total number of Joules’ Center Parcs stores to five. Reflecting the enforced closure of Joules stores for approximately half of the Period, store sales reduced by approximately 41% year on year.

The company’s wholesale channel was adversely impacted by the enforced closures of stores. Reduced footfall during the year, across both the UK and the Group’s US and German partners, saw wholesale sales reduced by approximately 17% year on year.

The Group describes its financial position as “robust”, with net cash of £4.7 million on 30 May 2021 and approximately £39 million of liquidity headroom against current facilities. This includes a £25m revolving credit facility that the company has extended to September 2024 and converted to an ESG-linked arrangement.

The agreement represents the Group’s commitment to positively impact its customers, colleagues and the environment. It links interest rate margin to Joules’ performance against three Sustainability Performance Targets; each of which aligns to its Responsibly Joules ESG framework.

Commenting is Nick Jones, chief executive officer of Joules.

“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. 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% 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 & 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.

“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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