Joules recorded soaring sales across all its channels but has warned of supply chain issues in the coming weeks and months, which threaten Christmas season success.

Revenues for the group jumped 35% year on year to £128m for the 26 weeks to November 28 and up 15% on a two-year basis.

Joules Chelmsford

Joules issued a profit warning due to supply chain issues and the Omicron variant

Joules attributed this to strong momentum in customer acquisition, growing to 1.9 million during the period.

The fashion and lifestyle retailer reported strong results in its stores, up 80% compared to the previous year, and down just 3% on a two-year basis despite lower footfall.

Joules said its five new Centre Parcs stores performed particularly well.

Ecommerce sales for the group increased 15% year on year and 54% on a two-year basis, supported by the acquisition of Garden Trading and the performance of the Friends of Joules marketplace.

Despite its strong results, Joules warned that its business has been badly affected by the supply chain issues plaguing the retail sector.

The retailer said it has experienced higher costs, stock delays and labour shortages in its fulfillment centres, resulting in extended product delivery times to online customers, stores and wholesale partners.

Its Black Friday period performed worse than expected.

With the continuation of these supply chain issues combined with the rise of the Omicron Covid-19 variant, Joules issued a profit warning. It now expects full-year profits to be below current market expectations and in the region of £9m to £12m.

Joules chief executive Nick Jones said: “Joules has achieved good revenue growth against the prior two comparative periods reflecting the strength of the group’s flexible model and despite a challenging external trading environment. 

“Alongside the strong appeal of our core Joules brand, the group continues to benefit from its increased diversification through Friends of Joules and Garden Trading, both of which continue to give customers even more reasons to shop with us.

“While we have not been immune to certain industry-wide pressures including supply chain disruption and cost inflation, we remain focused on delivering the group’s long-term growth strategy. 

“We have continued to invest in the business to support our plans and, despite the high levels of near-term consumer uncertainty, we remain very confident in achieving the group’s exciting future potential.”

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