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Joules expects FY21 profits to beat expectations amid sales boost

The news follows the retailers’ recent trading update for the financial year ended 30 May 2021, which saw revenue increased by 4% to approximately £199m from 190.8m the previous year

Joules has anticipated FY21 pre-tax profits to range between £5.5m and £6.5m, making it slightly ahead of its current market expectations of £5.2m to £5.3m.

The news follows the retailers’ recent trading update for the financial year ended 30 May 2021, which saw revenue increased by 4% to approximately £199m from 190.8m the previous year.

The spike in sales primarily reflects the strength of the group’s online presence and the increased number of active customers, as well as the positive contribution from the retailer’s acquisition of Garden Trading Company Ltd in February 2021.

However, sales in stores reduced by 41% year-on-year, reflecting the effect of the enforced closures for half of the period due to lockdown restrictions.

The wholesale channel was also affected by Covid-19 restrictions and saw sales reduce by 17% year-on-year.

Nick Jones, CEO of Joules, said: “I am delighted that, against this backdrop, Joules has been able to deliver a very solid financial performance and strong strategic progress.

“This outcome primarily reflects, firstly, the strength and relevance of the Joules brand to an increasing number of customers and, secondly, the increasing importance of our digital proposition both to customers and within our business model, with approximately 77% of our retail sales now generated online.”

He added: “As a result of the strength of the Joules brand and the increasing diversification of the group’s digital-led business model, we believe that the group is very well positioned to continue to deliver its ambitious growth plans.”

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