Britain's Joules warns of losses as sales fall

Earlier this year the company issued a profit warning and chief executive officer Nick Jones announced his departure.

Joules stock fell as much as 41% in early trading. Photo: Nathan Stirk/Getty Images

Joules shares plunged after the British retailer warned it will make a loss for the full year and said it was in negotiations with banks to waive debt covenants.

The clothing chain said trading has softened “materially” in recent weeks as sales of key categories like coats, rain jackets, knitwear and Wellington boots fell during the recent heatwave, in a statement Friday. Joules expects to report a loss in the full year, “significantly below current market expectations”.