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Country lifestyle retailer Joules has announced it is to increase the prices of some of its items in a bid to improve its profitability in the face of rising costs and supply chain issues.
In its interim results for the 26 weeks ended 28 November 2021, Joules said that after keeping its prices flat for “several seasons”, it will increase them from SS22 “where necessary”, to reflect the “industry-wide increases seen in raw materials, production and freight costs”.
It added that it also expects to make further rises for AW22 but is “confident” that the increases will not impact its competitive pricing position.
The news comes as it announced group revenues increased by 35% to £127.9m during the period, with store revenues increasing by more than 80% to £35.5m. However, it revealed pre-tax profits before adjusting items fell to £2.6m off the back of operating expenses increasing by 52.6% to £52.2m.
Nick Jones, CEO, said: “Whilst the group experienced strong levels of customer demand that resulted in good revenue growth against the prior two comparative periods, group profitability in the first half was impacted by various factors, most notably the severe inflationary cost environment.
“We have a clear plan of action to simplify the business, enhance efficiencies and mitigate the cost pressures that will enable the group to convert the strong levels of customer demand into sustainable, profitable growth.”
He added: “Whilst we acknowledge that there are areas within the business where we need to simplify our operations and improve profitability, we remain very excited in our long-term growth prospects.
“We have continued to see improvements in brand awareness and customer numbers, and we are confident that our broadened lifestyle proposition – which benefits from increased product and category diversification through Friends of Joules and Garden Trading – is more relevant than ever to consumers.”
