Joules has said its profits will be slightly ahead of expectations for the year and has secured an extension of its credit facility.
The fashion and lifestyle retailer said due to cost reductions, it now expects better-than-forecast results for financial year 2022.
Joules has made progress in optimising its costs, including right-sizing its wholesale business to fewer and better partners, as well as shortening lead times and diversifying its supply chain.
The retailer recorded sales growth of 8.5% in the first six weeks of financial year 2023 but said margins remained under pressure as lower consumer demand has led to more markdowns and a “heavily promotional environment”.
Joules has also extended its banking facility by £5m. As of June 26, the retailer had a net debt of £17.7m with £15m headroom.
Barclays has extended its borrowing facility until November in order to support it in its seasonal borrowing peak in the run-up to Christmas.
As part of the deal, Joules is anticipated to grant additional security to Barclays and will be restricted from paying dividends while the facility is in place.
The two parties are continuing discussions on medium-term financing, which are expected to conclude by September.
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