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Joules raises full year outlook as sales increase

Sophie Smith
19 July 2022

Joules has announced its expectations for the financial year ending 29 May 2022, anticipating adjusted profit before tax and adjusting items to be slightly ahead of current market expectations due to cost reductions.

The company said that the trading trends outlined in the group's previous update have also continued for the first six weeks of FY23 with a retail sales growth of 8.5% year on year.

Gross margins have remained under "significant pressure" with consumer appetite weighted towards mark downs amidst a heavily promotional environment.

In the 13 weeks to 1 May 2022, Joules posted net debt of £22 million. As at 26 June, the company had a net debt of £17.7 million, giving £15 million headroom within its current banking facilities.

Joules has received credit approval for a further £5 million headroom on its borrowing facilities with Barclays Bank Plc until November 2022 to support working capital requirements over the company's forthcoming seasonal borrowing peak.

As part of the additional headroom being made available, it is anticipated that the Joules will grant additional security to Barclays. The company will also be restricted from paying dividends for the period that the facility is in place.

The news comes after Joules' CEO stepped down in May, amid falling profits for the 13 weeks to 1 May 2022.

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