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The Markets
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Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK

Fashion & brands

Joules expects new lockdown to hit sales by £14-18mln

In the seven weeks to January 3, total revenue through the fashion designer’s own-branded retail channels was flat as online growth offset store closures

Joules Group PLC (LON:JOUL) said it expects the new restrictions to hit group revenues by £14-18mln if they were to continue through to April 1.

However, performance in the year to May 30 should be protected by better-than-expected sales and profits in the last seven months, strong momentum of digital sales and cost-cutting initiatives such as head office costs and lease renegotiations.

READ: Joules expects interim profits to drop despite e-commerce growth

In the seven weeks to January 3, total revenue through the fashion designer’s own-branded retail channels was flat.

Online sales soared 66% thanks to traffic growth and improved conversion rates, with the active customer base continuing to grow and reaching 1.5mln people at the end of the period.

Store sales plummeted 58% due to enforced closures of non-essential retail and, when they were allowed to trade, revenue was 23% lower when compared to the corresponding prior year periods, reflecting lower overall footfall trends.

As of January 3, the AIM-listed firm had net cash of £13mln and total liquidity headroom of £63mln.

House broker Liberum cut underlying earnings (EBITDA) expectations to £11mln from £13mln and sales forecasts to £184mln from £190mln for the full year.

Analysts said Joules’ “clear resilience” is due to a product offer that continues to resonate with consumers, continual growth in the active customer base, and “a truly multi-channel model, that has been bolstered by timely investment into systems and infrastructure”.

Shares rose 1% to 183.4p on Thursday at the opening bell.

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