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The Markets
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The Markets
by Proactive
Proactive UK has moved.
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The Markets
by Proactive
Proactive UK has moved.
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Fashion & brands

Joules expects full-year loss as lockdown hits, reopens 12 stores

Loss before tax for the year to May 31 is expected to be £2-3mln, while revenue dropped 12% to £191mln

Joules Group PLC (LON:JOUL) said it expects a full-year loss due to the closures imposed during the pandemic, though some shops have resumed trading.

Loss before tax for the year to May 31 is expected to be £2-3mln, while revenue dropped 12% to £191mln.

READ: Joules adds extra £15mln to existing debt facility, sees “strong” online engagement

The period ended with £4mln net cash and £53mln headroom against committed borrowing facilities, though funds are expected to dwindle down with upcoming payments for stock, tax and rent.

The fashion retailer has reopened 12 of 128 stores on Monday, following the government’s green light for non-essential businesses in England, and plans to resume trading in the rest of the estate in a phased manner.

Online sales climbed 40% between the start of lockdown at the end of March and May 31.

“The outturn for financial year 2020 is as good as could be expected considering the scale of the challenges over the past 12 months,” analysts at house broker Liberum commented.

“However, there are reasons for optimism; cash generation has been better than expected in the last quarter; eCommerce sales have been stronger than we had hoped; the brand remains increasingly popular and the timing of a phased re-opening has arrived.”

Shares advanced 9% to 126.15p on Tuesday morning.

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