- Prachi Singh |
British lifestyle brand Joules has said that in the weeks following the announcement of the group’s interim results on January 21, 2020, the company’s key retail channels performed in line with expectations. However, the company added that since the outbreak of COVID-19 in the UK, the group has experienced a decline in store footfall and revenue, which has significantly accelerated over recent days. The group’s e-commerce channel has also been impacted, as consumers have shown increasing caution with their disposable income. Joules expects these trends to impact its sales through its concession and wholesale trading partners in the UK and internationally.
Commenting on the update, Nick Jones, CEO of Joules, said in a statement: “The challenges that all retailers are currently facing are unprecedented in modern times. While the group’s near-term profitability will be impacted by the sector-wide effects of COVID-19, the board is remaining focused on protecting long-term value for its stakeholders and managing the near-term pressures on the business.
The company’s board expects COVID-19 to continue to have an impact on its business and the retail sector over the coming months, so it is actions such as removing cost and non-critical capex from the business and has decided to cancel the proposed interim dividend, saving 0.7million pounds of cash.