Joules expects £18m hit from lockdown after 66% sales rise

Joules COVID-19 pandemic lockdown trading update nick jones
Joules said it continued to grow its active customer base which reached over 1.5 million by the end of the period
// Joules sales rise 66% year-on-year thanks to online sales
// The growth was boosted by traffic and improved conversion rates across digital platforms
// Total store sales fell by 58% due to enforced closures of non-essential shops

Joules has reported a 66 per cent year-on-year sales increase thanks to the online sales boom in the seven weeks to January 3.

The growth was boosted by traffic and improved conversion rates across the retailer’s digital platforms.

In contrast, total store sales fell by 58 per cent due to the enforced closure of non-essential shops during the Covid-19 pandemic and reduced footfall as and when stores were open.

READ MORE: Joules revenue slumps as closures and discounting affect trading

Joules said it continued to grow its active customer base which reached over 1.5 million by the end of the period.

Joules said the potential loss in group revenues resulting from the closure of its stores, the cancellation of country shows and disruption to wholesale partners is likely to be in the range of £14 million to £18 million – if restrictions continue until April 1.

However, this will be partially mitigated by better than expected sales and profit in the seven months to January 3.

“We are pleased with the continued strong performance delivered across our digital channels during the Christmas trading period and are encouraged by the increasing customer awareness of, and demand for, the Joules brand,” Joules chief executive Nick Jones said.

“This has been supported by our Friends of Joules digital marketplace which added a great range of products and gifting options for customers throughout the Christmas trading period.

“Whilst the latest round of restrictions on store retail across the UK present a further challenge for the retail sector as we enter 2021, we remain very confident that Joules, as a highly relevant, digital-led brand with an engaged and growing customer base and healthy balance sheet, is well positioned to navigate these challenges.

“As a result, we remain as excited as ever by our long-term growth prospects.”

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