Online trading key to profits
JOULES REPORTS ‘STRONG STRATEGIC PROGRESS’
FASHION business Joules says strong digital growth has helped it return to profit despite its high street stores struggling during lockdowns.
The business said sales were up 4.4 per cent in the year to May 31, to £199 million, with revenues also helped by the acquisition of Garden Trading.
The addition of the business and strong e-commerce sales growth more than offset the impact of enforced store closures, the cancellation of country shows and the impact of the pandemic on the group’s wholesale customers.
Chief executive Nick Jones, right, said: “It is safe to say the 2021 financial year 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. “At the centre of our growth strategy remains the strong Joules brand. “During the year we continued to deliver on our brand’s clear mission and purpose – to brighten our customers’ lives and conduct business in a responsible way.
“As more and more consumers increasingly valued their leisure time spent outdoors and time doing the things they enjoy with the people they love, our brand has become increasingly relevant to a greater number of customers, reflected by brand health metrics reaching all-time highs.
The business, which is based in Market Harborough, said pre-tax profits were £6.1 million for the years, compared with a loss of £3.9 million in 2019-20.
Online sales were up almost 50 per cent, at £122 million, accounting for more than three-quarters of total revenues.
Store sales, by comparison, were down from £63.2 million to £36.6 million for the year, after shops were closed for about six months of the total period, compared with two months in the previous year.
The business was launched in 1989 by Tom Joule and floated on London’s junior market in 2016.
It has more than 100 stores and around 2,000 stockists around the world – including shops like John Lewis and Next.
Mr Jones said: “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 the group now offers significantly more products and categories than ever before.
“As a result of the strength of the Joules brand and the increasing diversification of the group’s digitalled business model, we believe the group is very well positioned to continue to deliver its ambitious growth plans.”