Joules swings to FY profit as online sales jump

Fashion brand Joules said on Tuesday that it swung to a full-year profit as solid online sales and the contribution from recently-acquired Garden Trading more than offset store closures.

In the year to 30 May, the company swung to a pre-tax profit before exceptional costs of £6.1m from a loss of £3.9m the year before. On a statutory basis, it swung to a pre-tax profit of £2m from a loss of £24.8m. Group revenue rose 4.3% to £199m, with e-commerce sales up 48% to £122m. Online sales now represent around 77% of group revenue, up from 56% a year ago.

"This pleasing set of results primarily reflects the strong performance of the group's digital proposition whilst the store estate was closed for approximately six months of the year, and the group's growing active customer numbers," Joules said.

Overall store and shows sales fell to £36.6m in the year from £63.2m in 2020. This reflects the forced closure of non-essential retail stores, and cancellation of shows and events as a result of Covid restrictions.

Chief executive Nick Jones said: "It is safe to say that FY21 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.

"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 that the group now offers significantly more products and categories than ever before, therefore providing customers with greater choice and more reasons to shop with us."