Joules “encouraged” by Q1 trading despite 18% sales drop

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Joules
Joules underwent a phased reopening of its stores from June 15, will all 128 sites reopened by the start of August.
// Joules overall Q1 sales drop 18% to £39.6m
// Retail revenue declined by 5%, but retail sales through Joules-owned retail channels increased by 1.5%
// Online surged 63%, while in-store sales dropped 49%

Joules endured a decline in first quarter sales as a result of lockdown, but its chief executive was “encouraged” by the recovery and trading was still ahead of expectations.

In the 13 weeks to August 30, group revenue fell 18 per cent year-on-year to £39.6 million.

Joules underwent a phased reopening of its stores from June 15, will all 128 sites reopened by the start of August.


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Despite this, Joules said its active customer base continued to grow as it recorded new customers both online and in-store.

Retail revenue declined by five per cent, but retail sales through Joules-owned retail channels increased by 1.5 per cent.

Meanwhile Joules’ ecommerce sales through its own online channels surged by 63 per cent in the first quarter, and total online sales when factoring in third parties jumped 45 per cent due to increased customer traffic and improved conversion rates.

Sales in Joules’ bricks-and-mortar stores fell by 49 per cent but the retailer said they have performed well since reopening after lockdown.

On the other hand, the retailer sad its wholesale partners’ stores remained closed for the majority of the period, which meant wholesale sales were dropped by 59 per cent – but the retailer said this was in line with expectations.

“We are encouraged by the group’s performance in the first quarter of the financial year with sales ahead of our expectations,” Joules chief executive Nick Jones said.

“This is testament to the flexibility of the Joules model and the increasing strength, relevance and awareness of the Joules brand.

“As with all consumer-facing businesses we face challenging trading conditions and unprecedented levels of uncertainty over the coming months and into the peak Christmas trading season.

“Against this backdrop we remain cautious on the future trading outlook and will continue to tightly manage costs and conserve cash.

“Notwithstanding this, we remain confident that – underpinned by the strength and relevance of our brand – Joules remains well positioned to continue to adapt to changing consumer behaviours.”

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