// Joules will raise prices from spring 22 with further increased planned for the autumn season
// Joules boss Nick Jones said that “severe” inflationary cost rises, such as rising freight costs, had hit profitability in its half year to 28 November
Joules plans to raise the price of its clothing after its half-year profits plunged in the face of “severe” inflationary cost rises.
Pre-tax profits before adjusting items fell £5.8m to just £2.6m in its half year to 28 November despite sales rising 35% year on year to £127.9m, or 15% on pre-pandemic levels.
Joules’ operating expenses jumped 52.6% to £52.2m in what boss Nick Jones termed a “severe inflationary cost environment” as supply chain costs rocketed. The fashion retailer said freight costs were “significantly higher than pre-pandemic levels and its wage bill at its distribution centres, along with digital marketing costs, also increased.
To rebuild profitability, Joules is focusing on a number initiatives, including hiking product prices from spring this year.
READ MORE: Joules warns profits will be dented by Omicron and supply chain issues
The retailer said:“ Having kept our prices flat for several seasons, we are now increasing them from spring summer 22, where necessary, to reflect the industry-wide increases seen in raw materials, production and freight costs.
“We expect to make further rises for autumn winter 22. We are confident that these increases will not impact our competitive pricing position, given the general inflationary pressures in the market, and that the brand will continue to represent great value for consumers.”
The retailer will also simplify its distribution network and will focus on wholesale partneres that give the greatest customer reach and growth. Joules has terminated arrangements with stockists and EU sales agents that did not meet its profitability criteria.
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