Joules FY profits will take a hit


Joules FY profits will take a hit

Joules has warned that its profits will be lower than forecast for the full year due to supply chain issues along with the impact of the Omicron variant. Its first-half results for the six months to 28th November were in line with previous guidance, with revenues reaching £127.9m as compared with £95.4m for H1 FY2021.

Group revenue for the nine weeks to 30th January 2022 was up 31 per cent against FY21 and 19 per cent against FY20 however, this performance, along with the Group’s PBT performance over the same period, is behind the Board’s expectations. This, says Joules, can be attributed to a 36 per cent drop in-store footfall due to Omicron as well as delays to the arrival of new stock which resulted in a lower full-price sales mix which impacted both revenue and gross margin. Wholesale revenues were also impacted due to the same supply chain issues. Increased costs from its third party operated distribution centre had also reduced profitability.

The business had taken steps to reduce costs wherever feasible and to liquidate aged and slow-moving stock. It had also simplified its wholesale model and applied minimum order value requirements.

Full-year PBT is now expected to be around £5 million.

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