British lifestyle brand Joules has published a business and trading update for the 11 months to 2 May 2021. Since the Group’s Interim Results on 27 January 2021, Joules has continued to deliver a positive performance across its retail channels that have been able to trade within the context of the UK’s lockdown restrictions.

Driving this positive performance is strong sales on the Group’s digital platform. This is alongside an encouraging initial contribution from the acquisition of Garden Trading Company Limited in February and the performance of the Group’s stores since their reopening from mid-April.

Despite continuing uncertainty impacting the retail sector, this momentum across retail channels is encouraging to the Board. As is the confirmation of the further easing of lockdown restrictions in England by the UK Government. The Board now anticipates the Group’s revenue and profit before tax for FY21 will be ahead of current analyst consensus expectations.

Business update

Ecommerce continues to deliver strong growth. Demand on Joules’ websites has grown approximately 50% year-to-date against the comparable prior year period; up from the 47% growth reported for the first half of the financial year. Friends of Joules, the Group’s digital lifestyle marketplace of third-party brands, also continues its strong growth momentum.

Meanwhile, stores are performing ahead of management’s expectations since re-opening following the third national lockdown. Sales for the four weeks since reopening are ahead of the comparable period two years ago.

Since the Group’s Interim Results, Joules has opened new locations in North Berwick and Center Parcs Woburn and Longleat; these are the first of five Center Parcs locations due to open over the coming months. The Group has also relocated two stores to brand-enhancing locations in Beverley and Cirencester.

Garden Trading has performed ahead of expectations over the first three months since the acquisition. Sales are up 85% against the comparable prior-year period.

 

 

Financial position

On 6 May 2021, the Group announced it has extended its £25 million revolving credit facility with Barclays Bank Plc to September 2024. It has also converted the facility to an ESG-linked financing arrangement; providing additional liquidity headroom certainty and further solidifying its commitment to the Responsibly Joules ESG priorities.

Commenting is Nick Jones, CEO of Joules. “We are delighted with the Group’s continued momentum, which reflects the strength of our product proposition, the flexibility and diversification of our business model, and the relevance of our brand to an increasing number of customers.

“Our digital proposition continues to go from strength to strength. We have been very pleased with the performance of our retail stores since their re-opening. This has been a great testament to the growing appeal of the Joules brand, the attractive, lifestyle location of our store portfolio, and the hard work and dedication of our colleagues across the business during this time.

“Although the past 12 months have been incredibly challenging for the retail sector, I truly believe that Joules is now in an even stronger position than ever before. We have an increasingly digital-led business, more diversified income streams, and a broader product proposition that is highly relevant to our customers’ lifestyles.

“Whilst the retail sector will continue to face near and medium-term challenges as a result of the pandemic, we look forward to the future with confidence underpinned by the strength and relevance of our brand and business model.”