Joules issues profit warning as supply chain issues bite

Market Harborough retailer Joules has issued a profit warning after suffering from supply chain issues, a labour shortage and higher costs during the first half of its financial year.

In a pre-close trading update for the 26 weeks to November 28 the firm said it now expects full-year profits to come in somewhere between £9m-12m – below market expectations.

The announcement is despite revenues leaping by 35% to £128m on the same period last year on the back of a strong online performance and through its new physical stores at Center Parcs complexes.

Nick Jones, chief executive officer of Joules, said: “Joules has achieved good revenue growth against the prior two comparative periods reflecting the strength of the group’s flexible model and despite a challenging external trading environment. Alongside the strong appeal of our core Joules brand, the group continues to benefit from its increased diversification through Friends of Joules and Garden Trading, both of which continue to give customers even more reasons to shop with us.

“While we have not been immune to certain industry-wide pressures including supply chain disruption and cost inflation, we remain focused on delivering the Group’s long-term growth strategy. We have continued to invest in the business to support our plans and, despite the high levels of near-term consumer uncertainty, we remain very confident in achieving the group’s exciting future potential.”