Joules anticipates loss despite positive talks

Troubled lifestyle brand Joules says it expects to post a significant loss this year despite “positive” talks with Leicestershire counterpart Next over a potential equity investment deal.

The firm told the London Stock Exchange this morning (19 August) that trading had “softened materially” since its last update on 19 July, with the warm and dry summer impacting sales of core items such as outerwear, rainwear, knitwear and wellies.

The company said it had seen an 8% year-on-year reduction in its retail sales in the 11 weeks of the current financial year to date. At the end of July, Joules’ net debt was £21.1m, leaving it headroom of £11.4m under its bank facilities.

Joules is currently in talks with Next which could see the larger firm take a 25% equity stake in the brand worth around £15m.

Today, Joules noted that discussions had been “positive” but that there was “no certainty” the talks will lead to an agreement.

The announcement follows a turbulent period for the retailer, which saw its share price plummet in July on the back of the news that it was bringing in KPMG to help boost its cash reserves.

Just a few days ago the company appointed former Compare the Market boss Jonathon Brown as CEO in an apparent effort to steady the ship.

Joules is expected to announce its full-year results in late October 2022.

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