Strong ecommerce growth boosts Joules FY21 results

Joules Group revenue for the year to May 30, 2021, increased by 4.3 percent to 199 million pounds compared to 190.8 million pounds in FY20 with strong e-commerce sales growth and the contribution from Garden Trading, more than offsetting the impact of enforced store closures, the cancellation of country shows across the UK and the impact of the pandemic on the group’s wholesale customers.

Commenting on the company’s full year performance, Nick Jones, Joules chief executive officer said in a release: “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.”

Review of Joules full year financial results

The company said, e-commerce sales increased by 48 percent to 122 million pounds and excluding the acquisition of Garden Trading, e-commerce sales increased by 43 percent. This growth, the company added, was led by sales through the group’s own websites. E-commerce represented 77 percent of the group’s retail revenue during the period.

The company’s overall store and shows sales were 36.6 million pounds in the year, which reflect the forced closure of non-essential retail stores, and cancellation of shows and events as a result of Covid-19. In the period, Joules stores were closed for approximately six months compared with two months in the prior year.

Joules wholesale revenue in the period, including Garden Trading, was 35.3 million pounds, a 17 percent reduction reflecting the ongoing impact of Covid-19 on many of the group’s wholesale partners both in the UK and internationally.

The company added that other revenue more than doubled to 5.1 million pounds reflecting the strong growth of Friends of Joules digital marketplace and strong performance from several of its licensed product categories and partnerships.

Joules swings to profitability

Profit before exceptional costs was 6.1 million pounds compared to loss of 3.9 million pounds in FY20, statutory profit before tax was 2 million pounds against FY20 loss of 24.8 million pounds and statutory profit after tax was 0.9 million pounds compared to FY20 loss of 20.3 million pounds.

Group gross margin was 49 percent, down 1.7 percent pts on the prior year, while basic earnings per share were 0.82 pence compared to FY20 loss of 21.61 pence.