British retailer Joules has warned the coronavirus (Covid-19) outbreak will impact the group’s sales as it witnesses a decline in store footfall.
While the group performed in-line with expectations in the weeks following the announcement of its results on 21 January, since the outbreak of Covid-19 in the UK, it has experienced a decline in store footfall and revenue, which has “significantly accelerated” over recent days.
The group said, as well as stores, its e-commerce channel has also been affected, though to a lesser extent, as consumers are showing increasing caution with their disposable income.
“These trends are also likely to impact the group’s sales through its concession and wholesale trading partners in the UK and internationally.”
While Joules is unable to provide financial guidance at this stage due to the level of continued uncertainty it is cancelling the proposed interim dividend, a saving of GBP0.7m (US$0.8m) cash.
CEO Nick Jones said: “The challenges that all retailers are currently facing are unprecedented in modern times.
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By GlobalData“While the group’s near-term profitability will be impacted by the sector-wide effects of Covid-19, the board is remaining focused on protecting long-term value for its stakeholders and managing the near-term pressures on the business.”
Jones added he is “very confident” that Joules will successfully emerge from the period in a position to continue to deliver its long-term growth plans.
Several UK retailers have reported the negative financial impact to their business from the coronavirus outbreak. Earlier this week, shares in Laura Ashley slumped by 60% after it confirmed plans to appoint administrators to take over the business. While Next has warned it could lose up to GBP1bn (US$1.15bn) in sales as the coronavirus impacts demand.
