Aug 19 (Reuters) – British fashion retailer Joules Group (JOUL.L) warned on Friday it would plunge to an annual loss, as the recent hot weather hit demand for its main categories such as outerwear and rainwear and a cost-of-living crisis dampened consumer spending.
The group expects a “significant” loss in the first half, pushing it to an annual pretax loss that could be significantly below market expectations.
Joules, which sells clothing, footwear and accessories, among others, has been struggling with its finances, profitability and cash generation, as cautious consumers spend less due to surging inflation in the country.
The retailer, which last month extended its banking facilities, is in talks with its bank to support its working capital requirements and expects to require a waiver of certain covenants.
Joules said retail sales in the first 11 weeks of the financial year were down 8%.
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Reporting by Muhammed Husain in Bengaluru; editing by Uttaresh.V
Our Standards: The Thomson Reuters Trust Principles.
