Group revenue has increased by 35% to £127.9m at Joules, the Market Harborough-based lifestyle brand. However with Group profitability impacted by factors including the severe inflationary cost environment, the company has said it will simplify operations.
The business has also been hit by global supply chain issues and labour shortages.
In interim results for the 26 weeks ended 28 November 2021 (H1 FY22), the group posted a pre-tax profit of £2.6m, decreasing from £3.7m in the same period of the year prior.
Meanwhile store revenue increased by more than 80% to £35.5m (H1 FY21: £19.7m), reflecting a strong recovery in retail demand to almost pre-pandemic levels.
Total e-commerce sales across the Group’s websites and third-party e-commerce partners increased by 14% against the prior period, and 53% on a two-year basis, driven by Garden Trading (acquired in February 2021) and strong performance through the Group’s digital partners.
Nick Jones, Chief Executive Officer, said: “Whilst the Group experienced strong levels of customer demand that resulted in good revenue growth against the prior two comparative periods, Group profitability in the first half was impacted by various factors, most notably the severe inflationary cost environment.
“We have a clear plan of action to simplify the business, enhance efficiencies and mitigate the cost pressures that will enable the Group to convert the strong levels of customer demand into sustainable, profitable growth.
“Whilst we acknowledge that there are areas within the business where we need to simplify our operations and improve profitability, we remain very excited in our long-term growth prospects.
“We have continued to see improvements in brand awareness and customer numbers, and we are confident that our broadened lifestyle proposition – which benefits from increased product and category diversification through Friends of Joules and Garden Trading – is more relevant than ever to consumers.”
