Joules anticipates loss despite positive talks
Struggling lifestyle brand Joules says it expects to post a significant loss this year despite “positive” talks with fellow Market Harborough-based retailer Next over a potential equity investment deal.
The Leicestershire company told the London Stock Exchange this morning (August 19) that trading had ‘slowed considerably’ since its last update on July 19 as the hot, dry summer impacted sales basic items such as outerwear, rainwear, knitwear and rubber boots.
The company said it saw an 8% year-over-year reduction in retail sales in the 11 weeks of the current fiscal year to date. At the end of July, Joules’ net debt was £21.1 million, giving him £11.4 million of headroom under his banking facilities.
Joule is currently in talks with Next which could see the biggest company take a 25% stake in the brand worth around £15m.
Today Joules noted that the talks had been “positive” but that there was “no certainty”, the talks will lead to an agreement.
The announcement follows a turbulent period for the retailer, which saw its stock price plummet in July as a result of the news he was bringing to KPMG to help increase its cash reserves.
Just days ago, the company named former Compare the Market boss Jonathon Brown as CEO in an apparent effort to stabilize the ship.
Joules is expected to announce its annual results at the end of October 2022.