Joules returns to profit


Joules returns to profit

Joules has said strong digital growth helped it return to profit despite its high street stores struggling during months of lockdowns. Sales were up 4.4 per cent in the year to May 31, to £199 million, with revenues also helped by the acquisition of Garden Trading. The addition of the new business and strong eCommerce sales growth more than offset the impact of enforced store closures, the cancellation of country shows across the UK and the impact of the pandemic on the group’s wholesale customers.

Chief executive Nick Jones said: “It is safe to say that the 2021 financial year was characterised by truly unprecedented trading conditions. Against this backdrop, the group delivered strong strategic progress, including growing our digital proposition, increasing our active customer base, and further diversifying as a leading lifestyle platform with the successful acquisition of Garden Trading and the continued expansion of Friends of Joules.

“At the centre of our growth strategy remains the strong Joules brand. During the year we continued to deliver on our brand’s clear mission and purpose – to brighten our customers’ lives and conduct business in a responsible way.

“As more and more consumers increasingly valued their leisure time spent outdoors and time doing the things they enjoy with the people they love, our brand has become increasingly relevant to a greater number of customers, reflected by brand health metrics reaching all-time highs.

Pre-tax profits were £6.1 million for the year, compared to a loss of £3.9 million in 2019-20. Online sales rose by almost 50 per cent to reach £122 million, accounting for more than three-quarters of total revenues.

Store sales had dropped from £63.2 million to £36.6 million for the year, after enforced closures.

Jones added: “The group’s strategic progress would not have been possible without the hard work, flexibility and, above all, dedication of our outstanding team. I am incredibly proud of and grateful for, the commitment shown by our people, from our head office teams to those on the front line in our stores, during this challenging period.

“As we move into the new financial year, the continued success and growth of Friends of Joules and our strengthened position in the home, garden and outdoor sector means that the group now offers significantly more products and categories than ever before, therefore providing customers with greater choice and more 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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