LSE – Retailer Joules warns of more pain ahead after holiday store sales plunge

(Reuters) -British fashion retailer Joules Group on Thursday reported a 58% plunge in total store sales for a seven-week period that includes the holiday season and warned of a hit of up to 18 million pounds if the new COVID-19 curbs continued.

However, the company’s retail sales through its websites – including sales through the Friends of Joules digital marketplace – were up 66% year on year, as more customers took to online purchases during the pandemic.

Shares of the retailer, which shed nearly 26% of their value in 2020, opened lower on the London Stock Exchange but climbed 2% by 0840 GMT.

This holiday season presented British retailers with a unique challenge as they navigated strict virus-related restrictions while also preparing for Britain’s departure from the European Union.

Making matters worse, the country went into a full national lockdown again earlier this week as it deals with a new fast-spreading variant of the virus.

Joules estimated the potential loss in revenues to be 14 million pounds ($19.01 million) to 18 million pounds if the new restrictions continue through to April.

($1 = 0.7364 pounds)