Retailer Joules ramps up hard Brexit contingency plans amid stellar profits
PUBLISHED: 09:48 05 December 2018 | UPDATED: 10:06 05 December 2018
Major retailers are ramping up contingency plans ahead of Brexit, as Joules announces it is setting up an EU distribution hub and ordering products early to protect against a possible hard deal.
Joules also said that it is bracing for increased administrative activities and is ramping up its currency hedging activities in anticipation of volatility in the pound as Brexit day approaches.
Joules, which has stores in Norwich’s Castle Street, and in Holt, said in a trading update: “Contingency plans have been put in place to mitigate the expected disruption that could arise in the event of a ‘hard Brexit’.
“These plans include establishing an EU-based third party distribution facility; scheduling earlier inbound product deliveries for our Spring/Summer 2019 ranges; preparation for expected increased administrative activities; and hedging US Dollar requirements more than 12 months forward.”
Joules made the announcement alongside stellar figures released for the first half, which saw revenue for the period increased by 17.6% to £113.1m.
Retail sales grew 21.2% to £79.9m, defying the wider gloom on the UK high street.
Given the performance, Joules expects underlying pre-tax profit to come in slightly ahead of expectations.