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Lifestyle brand Joules said it expected to report an annual loss in line with market expectations as a jump in e-commerce demand eased the impact from the Covid-19 pandemic.
For the financial year ended 31 May 2020, pre-tax losses were expected in the range of £2m-to-£3m, in line with market expectations, the company said.
The impact of Covid-19 on the group between March and May resulted in a 'material' reduction in revenue and a lower group gross margin reflecting the channel sales mix and higher promotional activity during this exceptional period,' the company said. This was only in part offset by the group's cost reduction initiatives.
E-commerce demand from the start of lockdown to the end of the period was significantly ahead of expectations and was more than 40% higher than the comparable period last year, and the collection of wholesale receivables was better than previously anticipated, it added.