Joules, the 海角视频 lifestyle brand, has warned the new national lockdown could see it lose between £14 million and £18 million – if the restrictions continue until April 1.
The national clothes brand said the closure of its stores, the cancellation of country shows and disruption to wholesale partners such as John Lewis, would have a big impact on its figures this year.
But the business did say that new retail restrictions would be partially mitigated in the full financial year to 30 May 2021 due to:
- better than expected sales and profits in past seven months
- continued strong momentum of its digital platforms, driven by growth in the number of "active" customers, the relevance of the product offer and recent investments in its distribution centre
- ongoing benefits from cost reduction activities, including head office costs and lease renegotiations
The business added that its strong balance sheet would enable it to "navigate the current climate and emerge in a strong position".
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Chief executive Nick Jones said: "While the latest round of restrictions on store retail across the 海角视频 present a further challenge for the retail sector as we enter 2021, we remain very confident that Joules, as a highly relevant, digital-led brand with an engaged and growing customer base and healthy balance sheet, is well positioned to navigate these challenges.
"As a result, we remain as excited as ever by our long-term growth prospects."
In a trading update for the last seven weeks, the business, which is based in Market Harborough, Leicestershire, said the current restrictions came on the back of decent online revenues.
Sales through its websites, including the Friends of Joules digital marketplace, were up 66 per cent year on year since late November, driven by more people shopping at home and improved conversion rates across the group's platforms.
Total store sales were down 58 per cent during the period, reflecting the enforced closures of non-essential stores and reduced footfall as and when stores were able to open.
Even when stores were trading, revenue was 23 per cent lower when compared to the corresponding prior year period and had been particularly down over the last two weeks.
However, the growth in Joules' e-commerce sales more than offset the decline from stores.
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As of January 3, the group had net cash of £13 million and total liquidity headroom of £63 million.
Mr Jones added: "We are pleased with the continued strong performance delivered across our digital channels during the Christmas trading period and are encouraged by the increasing customer awareness of, and demand for, the Joules brand.
"This has been supported by our Friends of Joules digital marketplace which added a great range of products and gifting options for customers throughout the Christmas trading period."