Joules takes hit from customers waiting for discounts

Customers waiting for discounts at the fashion and lifestyle brand Joules have hit margins at the company, in another sign of the impact of the cost-of-living crisis on UK retailers.

In a trading update, Joules reported “significant pressure” on its gross margins, with “customer appetite weighted toward markdowns”. It also said cost reductions meant its full-year loss would be narrower than the £1.5 million currently forecast.

The company, reported to be a favourite of the Duke and Duchess of Cambridge, said it was continuing with plans to simplify its business by reducing the number of global wholesale accounts to “focus on long-term profitable partnerships” and shorter lead times.

It is known for clothing inspired by a British country lifestyle and began in 1989 as a stall set up by founder Tom Joules at a country show in Leicestershire. Its stock rose 9% to 23.2p in London on Tuesday.

Joules said: “The group is making good progress on its plans to improve profitability by simplifying the business and optimising the cost base. This includes implementing the group’s previously disclosed plans to reduce its global wholesale accounts to focus on long-term profitable partnerships, shorten product lead times, and diversify [our] ethically sourced supplier base.”