Joules returns to profit in FY21

Joules has announced that it has returned to profit in its latest full-year results, rising to a pre-tax profit of £6.1m, up from a loss of £3.9m the prior year. 

It comes as its group revenue saw an uptick of 4.3% to £199m in the full-year ended 30 May 2021, as strong e-commerce sales and its garden trading business “more than offset” the impact of store closures.

Its e-commerce sales soared by 48% to £122m, up from £82.7m the year before, with growth primarily led by sales through its own websites. In total, e-commerce represented 77% of the group’s retail revenue during the year, up from 56% in 2020. 

Overall sales totalled £36.6m in the period, almost halving from the £63.2m reported last year, however. According to Joules, this reflects the forced closure of non-essential retail stores, as well as the cancellation of shows and events as a result of the pandemic.  Over the year, its stores were closed for approximately six months, compared with two months the prior year.

Wholesale revenue also fell by 17% to £35.3m, again reflecting the impact of the pandemic on many of its wholesale partners both in the UK and internationally.

Other revenue more than doubled to £5.1m however, reflecting the “strong” growth of its Friends of Joules digital marketplace and strong performance from several of its licensed product categories and partnerships.

In addition, exceptional costs totalled £4.2 m, down from £21m the year before, including a £2.9m(FY20: non-cash impairment charge, £0.6m in garden trading acquisition costs and £0.7m in restructuring costs.

Nick Jones, CEO of Joules, said: “It is safe to say that FY21 was characterised by truly unprecedented trading conditions. 

“Against this backdrop, the group delivered strong strategic progress, including growing our digital proposition, increasing our active customer base, and further diversifying as a leading lifestyle platform with the successful acquisition of Garden Trading and the continued expansion of Friends of Joules.”

He added: “As we move into the new financial year, the continued success and growth of Friends of Joules and our strengthened position in the home, garden and outdoor sector means that the group now offers significantly more products and categories than ever before, therefore providing customers with greater choice and more reasons to shop with us. 

“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.”