Shares in Joules Group PLC fell on Friday after it warned that warmer weather in Britain would dampen sales of winter clothing and cause weaker-than-expected annual earnings.
Joule shares were down 36% each in London on Friday morning at 28.30 pence. By 2022, its share has dropped to 80%.
Record warm weather in the UK in recent weeks has hit sales of winter clothing, including "cloaks, knitwear and boots". Joules warns that the unprecedented weather "has caused a continued decline in consumer demand due to a well-documented cost of living crisis".
He warned that trade was "significantly relaxed" in the five weeks leading up to August 14. Margins have been hit and Joules now expects a "significant loss" in the first half. A rural lifestyle retailer in Leicestershire, UK, is benefiting from self-employment and expects to improve in the second half of the year. "In light of this, the board currently expects the group to make a full-year loss before tax and adjustment, which is significantly below current market expectations," he said.
In addition, the number of more than 2 million active customers is up 10 percent from last year, Joules said. "There is sufficient liquidity to manage our working capital needs, including the repayment of the expansion facility in November 2022," the company added. It is seeking waivers to some conditions on the form and is currently in "positive discussions" with the bank.
Earlier this week, Joules appointed Jonathon Brown as their new CEO, effective September 30. Brown will join as CEO on September 7 and take over at the end of this month. He was most recently CEO of Compare Market, part of financial services firm BGL Group, and held positions at retailers such as Kingfisher PLC and John Lewis. The new appointment comes after Joules said it was in talks with Next PLC to acquire Total Platform Services under pressure. If passed, Next will put around £15m on the line. Joules said on Friday, "the group remains the following positive discussions about the total platform service to support the long -term growth plans and the potential investments of the stocks. Will be done with the case in the report. ”
Read more: https://www.lse.co.uk/news/joules-shares-scorched-as-uk-heatwave-compounds-cost-of-living-woe-p7v2psps6yv18eu.html
