Joules CEO to step down amid tumbling profits

Joules has announced that CEO Nick Jones is stepping down, amid falling profits for the 13 weeks to 1 May.

Jones will step down from his three-year tenure in the group's next financial year, with the premium British lifestyle group to begin searching for his successor immediately.

During the period ending 1 May, Joules posted revenue growth of 20%, while net debt was approximately £22 million with liquidity headroom of £11 million - in line with expectations.

However, the retailer said market conditions have become "more challenging" during and following the Easter period as "consumer confidence has been impacted by the rising cost of living".

Joules added profits have fallen below expectations with increased dependency on promotional activity and reduced demand for full price items, which has impacted margins through Joules' own channels.

Demand for home and garden categories have also been subdued, particularly online, with garden trading significantly below expectations over the peak sales period of March and April. Third party sales have been weaker than expected in the UK, while US wholesale sales have remained below expectations due to stock delays and lower demand.

Whilst the Board are "cautious" about its near-term outlook due to trading challenges anticipated to continue during the first half of fiscal year 2023, Joules said it remains confident in the business' long-term prospects.

Nick Jones, CEO of Joules, commented: "Building on the strategic progress made so far, over the coming months we will continue to deliver against the clear priorities that the Board and I believe will create a strong foundation for Joules to achieve its significant long-term potential, as well as helping the business to navigate the current challenging trading environment.

"Underpinned by the strategic actions we are taking to optimise the business, Joules will emerge stronger and better positioned to achieve long-term, profitable growth."

Ian Filby, Non-Executive Chairman of Joules, added: "On behalf of the Board and everyone at Joules, I would like to thank Nick for his significant efforts over the last three years. He has led the business with integrity, care, and energy during what has been a particularly challenging period for the retail sector, including during the Covid-19 pandemic.

"Under Nick’s leadership Joules has made good progress against its strategy to develop as a digital-led lifestyle group. More recently, he has led the business in implementing a number of important strategic initiatives that will underpin the Group’s future over the coming years."