Coronavirus: Joules scraps dividend as sales fall
High street retailer Joules has cancelled its dividend payment in a bid to save cash as sales plunge due to coronavirus.
Joules said the decision to scrap its proposed interim dividend will save the firm £700,000 as it attempts to “manage the near term challenges” caused by the outbreak.
The brand has suffered a decline in store footfall and revenue since the outbreak of coronavirus, which has “accelerated over recent days” as the pandemic gains momentum in the UK.
Online sales have also been impacted as consumers are increasingly cautious with their disposable income amid the growing uncertainty.
Joules said it was unable to provide financial guidance on the impact of coronavirus on its business.
The retailer said it has £16m cash headroom, a strong relationship with Barclays and that founder and major shareholder Tom Joule is supportive of the business.
However Joules added that the government must take more urgent action to provide support for people working in the retail sector.
Nick Jones, chief executive of Joules, said: “The challenges that all retailers are currently facing are unprecedented in modern times. Our immediate and over-riding objective is to ensure the wellbeing and protection of our colleagues and our customers.
“Our teams continue to demonstrate a flexible, can-do attitude during this testing time, and I would like to thank my colleagues across the world for their continued commitment and positivity.
“While the Group’s near-term profitability will be impacted by the sector-wide effects of Covid-19, the Board is remaining focused on protecting long-term value for its stakeholders and managing the near-term pressures on the business.”