Joules Group PLC (LON:JOUL) profits slumped at it took one-off costs of £6.7mln for stock write-downs, head office costs and distribution issues.
The “British countryside” fashion retailer flagged the problems at the start of the year but said it has now identified the root cause and had sorted out stocks for the spring/summer season.
READ: Joules profits wellied by Christmas stocking mishap
Revenues in the 26 weeks ended 24 November dipped 1% to £111.6mln, while profits before the one-offs dropped 10% to £8.4mln though they slipped to £1.7mln after the exceptional items.
Analysts at house broker Liberum insisted the problems were just a “one-off instance” and growth rates from here should return to “higher, more typical levels”.
“The brand and its ranges continue to resonate well, evidenced by strong website traffic,” Liberum added.
This year’s results also did not include the crucial Black Friday weekend, which, if added, would have seen sales rise by 1.3%.
Net cash at the end of the period was £2.1mln.
Shares were up 4% to 190p shortly after Tuesday’s opening bell.