// Joules predicts it will end 2020 with underlying loss of between £2m and £3m
// The Covid-19 lockdown had an impact on revenue as stores temporarily shut
Joules has said it expects to conclude 2020 with an underlying loss of between £2 million and £3 million before tax for the year to May 31.
The fashion group said the coronavirus lockdown accelerated the drop in revenue as stores across the UK were forced to shut.
Joules said that the impact of the pandemic between March and May “resulted in a material reduction in revenue and lower group gross margin” and predicted a loss before tax for the year of between £2 million and £3 million.
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For the three months of the lockdown, Joules sales were £191 million, down 12 per cent against the same period the previous year.
Overall retail sales were £146 million with store sales down by 20 per cent and online sales up five per cent.
Meanwhile, wholesale revenues were £42 million, down 26 per cent.
On June 15, Joules reopened 12 stores and said it expects to “re-open its remaining stores on a phased basis over the coming weeks”.
It said it was “too early to accurately forecast how quickly and to what extent store footfall and sales will recover”.
“Whilst this continues to be an exceptionally challenging period for people, communities and businesses, I am delighted with how Joules has responded over recent months,” Joules chief executive Nick Jones said.
“We were quick to adapt to the initial disruption of the Covid-19 pandemic by bolstering our liquidity position, preserving cash and focusing our trading online.
“We are very encouraged with the significant 40 per cent growth in ecommerce demand during the lockdown period, which is particularly pleasing given the already established scale of our ecommerce operations.
“As we move out of lockdown and into a ‘new normal’ for retail, I am confident that Joules is exceptionally well positioned to continue to react to changing consumer behaviours and that our brand – which brightens our customers’ lives – is more relevant than ever to consumers.
“Whilst we will continue to face very challenging trading conditions over the coming months, the Joules customer base continues to grow, and I believe the brand is stronger than ever. We are now looking forward to the reopening of our stores as well as those of our wholesale partners.
“I would like to take this opportunity to again thank our amazing colleagues for their resilience and hard work, our loyal customers for their support, and our valued business partners for their flexibility and collaboration throughout this uniquely challenging time for us all.”
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