Joules issues profit warning as perfect storm bites hard

Joules, the Market Harborough lifestyle retailer, has vowed to make cuts at its head office, on capital expenditure and on marketing after a weaker-than-expected January.

The move comes despite revenues for the nine weeks to Janary rising by 31%. However, Joules says profits for the period are behind expectations after the Omicron variant pushed down footfall in its stores, challenges facing the global supply chain impacted its margins and higher prices paid its third party-operated distribution centre.

The company says it will raise the prime of its Spring/Summer 2022 collection to try and counteract these headwinds.

Joules said it now expects profits to come in at around £5m this year, against £6.1m in 2021.