Joules lowers H1 profit guidance amid global supply issues
The lower profit expectation was attributed to the ‘well-documented’ global supply chain issues which have resulted in some higher costs and stock delays during the period
Retailer Joules expects to report lower pre-tax profits for the 26-week period ending 28 November ranging from £2m to £2.5m, compared with last year’s result of £3.7m.
The lower profit expectation was attributed to the “well-documented” global supply chain issues which have resulted in some higher costs and stock delays during the period.
In addition, it added that labour shortages in third-party operated distribution centres (DC) have resulted in extended product delivery times to online customers, stores and wholesale partners.
These factors were “particularly acute” in November, including the busy Black Friday period, which alongside weaker year on year online traffic contributed to performance during this month being “below expectations”.
However, overall group revenue increased by 35% to approximately £128m, up from £95m the previous year.
E-commerce grew 14% during the period and benefitted from the acquisition of Garden Trading and the performance of third-party e-commerce partners.
Meanwhile, Joules revealed wholesale revenue, excluding Garden Trading, increased 16% year-on-year reflecting the reopening of the group’s wholesale partners in the UK and internationally.
Nick Jones, CEO of Joules, said: “Joules has achieved good revenue growth against the prior two comparative periods reflecting the strength of the group’s flexible model and despite a challenging external trading environment.
“While we have not been immune to certain industry-wide pressures including supply chain disruption and cost inflation, we remain focused on delivering the group’s long-term growth strategy.”
