- Company anticipating profit before tax ahead of market expectations.
- Joules report further cost reductions.
- Joules shares surged 16.5% on Tuesday.
Joules reported its trading update following the completion of its FY22 financial year and provided an update on its banking facilities.
Trading for the clothing firm was consistent with previous trends outlined in its earlier trading update. Furthermore, due to further cost reductions, the company anticipates FY22 profit before tax to be slightly ahead of market expectations.
Meanwhile, the first six weeks of FY23 expect retail sales growth of 8.5% year on year. This may signify a potential comeback for the retail industry. Or will inflation remain an issue?
However, gross margins have remained under significant pressure after consumer appetite weighted towards mark downs amidst a heavily promotional environment.
Overall, Joules stated they are “making good progress” in improving profitability by simplifying the business and optimising the cost base. So at least someone is making progress in this market.
The company also stated its financial position, as the group had a net debt of £17.7 million, giving £15 million headroom within its current banking facilities.
Joules shares surged 16.5% following the report on Tuesday. I guess shareholders have hit the jackpot.