Fashion retailer Joules forecasts £18m revenue hit due to new lockdown restrictions
British fashion retailer Joules has forecast a revenue hit of up to £18m due to the current Covid-19 lockdown restrictions in the UK, the firm said as it announced a sharp drop in store sales over the winter.
Joules said total store sales declined 58 per cent in the seven weeks to 3 January due to the closure of non-essential stores and reduced footfall during the pandemic.
Revenue fell 23 per cent during the period when stores were able to remain open.
However total retail sales through the retailer’s online platforms increased 66 per cent, reflecting the consumer shift towards online shopping during the coronavirus ciris.
Joules has forecast that new national lockdown restrictions will cost the company between £14m to £18m in lost revenue if they were to continue until 1 April this year.
But the company said the impact will be partially mitigated by better than expected sales and profit performance in the seven months to 3 January, strong digital platform performance and cost reductions, including head office costs and lease renegotiations.
Joules, which has net cash of £13m and total liquidity headroom of £63m, said it is confident it can navigate the current climate and “emerge in a strong position”.
Joules chief executive Nick Jones said: “Whilst the latest round of restrictions on store retail across the UK present a further challenge for the retail sector as we enter 2021, we remain very confident that Joules, as a highly relevant, digital-led brand with an engaged and growing customer base and healthy balance sheet, is well positioned to navigate these challenges.
“As a result, we remain as excited as ever by our long-term growth prospects.”
The company will report its interim results on 28 January.