Joules has not given investors any financial guidance for the year ahead due to the “ongoing uncertainty” over coronavirus, which has hit footfall and sales over the last few weeks.
The fashion brand gave an update to the City this morning saying it had seen a decline in store footfall and revenue since the outbreak began and which had “significantly accelerated over recent days”.
The retailer noted that its ecommerce sales had been affected by the spread of the virus “albeit to a lesser extent” due to consumers being increasingly cautious with disposable income.
As a result, Joules said it would not be drawn on giving financial guidance but it would be “removing cost and non-critical capex from the business” immediately and had cancelled its dividend.
Joules said it had £16m in cash headroom and its board “continues to plan for multiple scenarios and explore various ways to mitigate the impact of reduced demand for a potentially extended period of time”.
Chief executive Nick Jones, said: “The challenges that all retailers are currently facing are unprecedented in modern times. Our immediate and overriding objective is to ensure the wellbeing and protection of our colleagues and our customers. Our teams continue to demonstrate a flexible, can-do attitude during this testing time, and I would like to thank my colleagues across the world for their continued commitment and positivity.
“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.
“We have an outstanding, unique brand and a fantastic team. I am very confident that Joules will successfully emerge from this very difficult period in a position to continue to deliver its exciting long-term growth plans.”
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