Joules : Business Update

This announcement contains inside information within the meaning of the Market Abuse Regulation.

13 September 2022

Joules Group Plc

("Joules", the "Group", the "Company")

Business Update

Further to the Group's announcement on 7 August in relation to its engagement with Next Plc ("Next"), Joules confirms that discussions about Next plc acquiring an equity stake in the Group have ceased, however discussions regarding Joules potentially adopting the Next Total Platform in the future will remain ongoing. The Company has an ongoing positive relationship with Next, successfully selling Joules products through Next's Label channel which will continue.

The Group continues to develop and execute its strategy and turnaround plan, which focuses on driving higher profitability through: a better pricing and promotional strategy; focusing on more profitable product categories with shorter time to market; optimising the Group's channel mix; and a continuing strong focus on cost control. The Group's outlook for the full year remains unchanged.

Jonathon Brown, the Group's new CEO with effect from today, is pleased to announce that Tom Joule, the Company's founder and a Non-Executive Director of the Group, will lead, in an executive capacity, the Company's renewed product development process for the forthcoming seasons to oversee the Company's product offer and to ensure it surprises and delights our customers.

The Group continues to assess its ongoing financing requirements and is considering alternative options, including a possible equity raise, to allow the Company to strengthen its balance sheet. A further announcement will be made if and when appropriate.

This announcement contains inside information within the meaning of the Market Abuse Regulation. The person responsible for arranging release of this announcement on behalf of Joules is Caroline York, Chief Financial Officer.

Joules - a premium lifestyle group with an authentic British heritage

Joules is a premium lifestyle brand and group with an authentic heritage and values of family, fun and joy in the countryside.

Joules creates and curates exceptional products that brighten the lives of its customers, delivered through leading digital platforms and supported by enticing experiences and stores that are located in desirable locations relevant to the Joules customer's lifestyle. 

The Joules story began in 1989, when Tom Joule started selling clothing on a stand at a country show in Leicestershire. Today, the business designs and sells Joules-branded clothing, footwear and accessories for women, men and children as well as collections of homeware, toiletries, lifestyle and pet product ranges that are carefully designed and developed through selected licensing partnerships. Each collection comprises Joules' distinctive use of humour, colour and unique prints, each of which is hand-drawn by the brand's talented in-house print design team at its headquarters in Market Harborough, Leicestershire.

In 2021, Joules acquired leading digital home and garden retailer The Garden Trading Company, strengthening its position in the important and fast-growing home, garden & outdoor category. Similarly inspired by the British countryside, Garden Trading designs and sells distinctive products through its own e-commerce platform and many wholesale partnerships across the UK.

Joules' distinctive design-led products are complemented by an increasingly broad customer offer provided through its digital marketplace 'Friends of Joules' that enables third-party brands to offer curated, complementary products to the Joules customer base, enhancing Joules' digital platform with thousands of products from hundreds of creative businesses to give customers everything they could ever need for a contemporary country lifestyle.

The Joules group caters to its more than 2 million active customers through its own digital platforms, its retail stores in the UK and at country shows and events. Joules extends its brand reach through well-established third- party relationships - concessions, online marketplaces, and traditional wholesale.

www.joules.com

www.gardentrading.co.uk

www.joulesgroup.com