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Joules hit by supply chain costs and DC disruption

Joules hit by supply chain costs and DC disruption

Joules has revealed the impact of supply chain challenges in its latest trading update and update on its interim results.
The company said that revenue was weaker than expected in January thanks to Omicron impacting footfall. There were also delays to new stock arrivals as a result of global supply chain challenges resulting in a lower full-price sales mix and therefore impacting revenue and gross margin.

Joules has also seen a continued impact on gross margin of increases in freight, duties and distribution costs, it said.

In particular, Joules said that it had been hit by continued operational disruption, lower productivity and higher than expected costs within its third-party operated distribution centre. It said that distribution centre costs for December and January were around £1.2 million above expectations and more than twice the previous year.

However, Joules said that the distribution centre is now normalising with delivery times back to standard service levels and productivity improved.

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