Joules to take £18m hit from lockdown 3.0
Joules, the Market Harborough lifestyle retailer, says it will lose up to £18m in revenue due to the third English lockdown.
The company revealed in a trading update this morning (January 7) that the cancellation of county shows, the closure of its stores and disruption to wholesale partners will mean its turnover will be adversely impacted.
The news comes as Joules revealed its Christmas performance for the seven week period to January 3 during which it saw sales in its physical stores slump by 58%. However, total revenue was up slightly, by 0.3% due to an increase of 66% in sales through its online channels.
The firm says it has £13m of cash at hand, with a total liquidity headroom of £63m.
Nick Jones, CEO of Joules, said: “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. 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.”
