Joules welcomes ‘encouraging’ performance despite lower sales

Joules has announced that revenue performance was “ahead of expectations” at £39.6m in the 13 weeks ended 30 August 2020. Overall group revenue was down by 18% in the period, however, reflecting the impact of store closures, as well as the disruption seen across its wholesale business. While retail revenue declined by 5%, retail sales through its owned retail channels increased by 1.5%, reportedly supported by a strong product and promotional offer. In its latest trading update, the retailer also delivered a “strong” online performance. E-commerce sales through its own online channels soared by 63%, while total online revenue increased by 45% against the prior year. According to the group, this reflects increased customer traffic to Joules' websites, as well as improved conversion rates. In addition, Friends of Joules, the group's digital marketplace has “continued to perform very well, with customers responding well to the enhanced product offer”. The group noted that stores have “performed well” since the estate reopened this summer, with “strong” levels of customer conversion supporting a sales performance ahead of the board's expectations. The retailer said this reflects the “well-balanced” geographic locations of its retail stores, pent-up customer demand and a “strong” promotional offer to help drive footfall. Nick Jones, CEO of Joules, said: "We are encouraged by the group's performance in the first quarter of the financial year with sales ahead of our expectations. This is testament to the flexibility of the Joules model and the increasing strength, relevance and awareness of the Joules brand. “The group's strong e-commerce performance demonstrates the appeal of Joules as well as our growing customer base and we continue to be very encouraged by the performance of our Friends of Joules digital marketplace.” He added: “In addition, we have been pleased with the performance of our stores since reopening, with higher levels of conversion when compared to pre-lockdown and steadily improving footfall trends. “As with all consumer-facing businesses we face challenging trading conditions and unprecedented levels of uncertainty over the coming months and into the peak Christmas trading season. Notwithstanding this, we remain confident that Joules remains well positioned to continue to adapt to changing consumer behaviours."

Joules welcomes ‘encouraging’ performance despite lower sales

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