Retailer’s profits fall due to Covid and supply chain challenges

  • Joules reports pre-tax profits of £2.6m in H1 FY22, down from £3.7m in FY21
  • Revenues for the nine weeks to 30 January 2022 increased by 31% compared to FY20 and 19% compared to FY21
  • Omicron variant impacted retail footfall, causing a 36% drop from pre-Covid levels
  • Supply chain disruptions led to delayed stock arrivals and higher costs at the Distribution Centre
  • Wholesale revenues affected by cancelled orders and lower productivity
  • Joules expects trading to recover in line with previous expectations for the rest of the year

Joules, the British lifestyle brand retailer, has reported a drop in pre-tax profits for the six months ending 28 November 2021. The company now expects full-year profits to be between £5m and £10m, down from its previous forecast of £10m to £12m. Revenues increased by 34% compared to the same period last year, reaching £127.9m. However, the performance is below the board’s expectations due to the Omicron variant affecting footfall and supply chain issues causing delays in stock arrivals. Wholesale revenues were impacted by cancelled orders and lower productivity at the Distribution Centre, leading to higher costs. The company expects trading to recover as expected for the rest of the year, citing improved stock position and returning footfall.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about Joules’ financial performance, including specific numbers and comparisons to previous years. It also explains the reasons for lower profits, such as the impact of Omicron variant, supply chain challenges, and operational disruptions. The article is focused on the main topic without digressions or unnecessary details.
Noise Level: 3
Noise Justification: The article provides relevant information about Joules’ financial performance and the factors affecting it, such as Omicron variant, supply chain challenges, and operational disruptions. It also mentions the company’s expectations for future improvement. However, it lacks in-depth analysis or actionable insights.
Financial Relevance: Yes
Financial Markets Impacted: Joules’ stock price
Financial Rating Justification: The article discusses Joules’ financial performance, including profits, revenues, and expectations for the future, which can impact the company’s stock price in the financial markets.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the text.

Reported publicly: www.retailsector.co.uk