Joules mulls hiking prices for shoppers to offset rising Brexit costs
Fashion retailer Joules has warned it is considering increasing prices for consumers as it revealed that Brexit had disrupted exports and could cost it an extra £1m per year.
Joules said that, despite its preparation for the end of the transition agreement, exports to certain EU markets had suffered, with Germany being particularly impacted.
The new trading arrangements will result in higher costs for some exports due to higher duty charges, and more expensive courier and administrative fees.
Joules said it expects the costs to amount to between £800,000 to £1m a year.
It said it will consider a potential increase in selling prices and structural changes to its logistics operations to mitigate the impact.
Joules also announced that revenue dropped 15.3 per cent in the 26 weeks ended 29 November, as a 45 per cent jump in website sales failed to offset the closure of the high street retailer’s stores.
Profit before tax after exceptional costs of £2.4m was down £400,000 to £1.3m.
The firm’s finance chief Marc Dench, who joined Joules ahead of its stock market listing in 2016, separately revealed that he will step down in the coming months to take up a job in a different sector.
Joules chief executive Nick Jones said: “Whilst the retail sector will continue to face near and medium-term challenges as a result of the pandemic, I remain confident that Joules – underpinned by the strength of our brand as well as the group’s flexible and scalable platform – remains well positioned to achieve its strategic objectives to grow as a leading lifestyle brand and digital marketplace.”