Management at country casual brand Joules say they are well placed to weather the Covid-19 storm, despite posting annual losses of £2 million and a 12.3 per cent drop in trade.
The Leicestershire-based lifestyle brand saw revenues drop from £218 million last year to £190.8 million in the year to May 31, due to the pandemic and stock issues over Christmas.
The total losses directly caused by Covid-19 were put at around £31 million.
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Pre-tax profits went from £12.9 million the previous year to the £2 million losses.
Like many big name retailers the figures were helped during lockdown by a rise in people going online to make purchases, which accounts for more than half of all sales.
Even before the pandemic store sales, it said, were down 8 per cent, reflecting changes in the sector and lower promotional activity.
The business, which is building a new £20 million headquarters in its home town of Market Harborough, said all its stores were now open while it had £5.4 million spare cash in the bank and liquidity headroom of £54 million.
During the lockdown Joules helped its local community by donating 50,000 face masks to key workers and helped source hospital gowns for hospitals in Leicester.
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It also launched a “Rainbow Edit” collection with all profits – more than £70,000 so far – going to the NHS Charities Together Urgent Covid-19 appeal.
Chief executive Nick Jones said he was proud of the way Joules staff had responded to the pandemic and the loyalty of its customers and the businesses it works with.
He said: “We were quick to bolster our liquidity position, preserve cash and focus our trading online, and we are very encouraged by the more than 70 per cent growth in e-commerce demand since the start of the new financial year as well as the performance of our stores since reopening.
“This is testament to the strength of the Joules brand, the relevance of our product range, the desirable locations of our stores and the flexibility of our model.
“Whilst the Group’s financial results for the year were impacted by challenging external trading conditions in the 海角视频 throughout the year; the stock availability issue that, as previously reported, impacted our e-commerce sales over the Christmas trading period; as well as material Covid-19-related disruption during the final quarter, I am very pleased with the continued progress we have made against our long-term strategic goals.
“We have further strengthened our flexible ‘Total Retail’ model; enhanced our 海角视频 and US supply chain operations to support our growth plans; and launched Friends of Joules, an exciting new digital marketplace.
“Whilst the retail sector will continue to face challenging trading conditions over the coming months, I believe that Joules is very well positioned to navigate both the existing and potential further Covid-19-related challenges and continue to invest in targeted growth opportunities.
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“The Joules brand’s awareness and health metrics have never been stronger, and I firmly believe that, underpinned by our strong brand purpose, Joules is more relevant than ever before.”
The business, which has around 1,700 staff, said a third of its head office staff and all its store workers were furloughed during the lockdown.
Tom Joules started the business back in 1989 after buying 80 per cent of the family clothing firm from his father, Ian.
He sold socks, wellies and hats at agricultural fairs and equestrian shows before supplying Cotswolds and seaside shops, then designing his own range of distinctive, branded goods.
The business floated on London’s junior market in May 2016, at a time when sales and profits were growing exponentially.
Today the business has 128 stores in the 海角视频 and Ireland and 2,000 stockists around the world, including shops such as John Lewis and Next at Home.
Mr Joules is now the chief brand officer, overseeing things such as product development, new initiatives such as the Friends of Joules online marketplace and international growth.