Joules Group PLC (AIM:JOUL)'s shares slumped as it reported a drop in profits in the Easter trading period, and the company's chief executive is leaving.
Despite a 20% increase in revenue, the country lifestyle retailer reported profits fell short of management expectations in some areas of its business in the 13 weeks to May 1.
Customers seeking bargains and avoiding full-price items hurt its margins in its own channels due to a competitive environment with an emphasis on promotional activities.
There was also "subdued" demand for its home and garden categories, especially with online sales.
Its peak sales period of March and April was below expectations for the recently acquired Garden Trading.
Similarly, as demand dipped and stock faced delays, third-party sales underperformed at a number of UK accounts and US wholesale sales lagged behind expectations.
Shares of the company were down 22.36% to 42.70p.
In the past year, the stock price fell 84%.
Trading challenges are expected to persist into the first half of 2023, and Joules is "cautious" about its near-term outlook.
Jones, head of Joules for three years, is to leave during the first half of the company's next financial year, with a search for his successor to begin immediately.
As of May 1, 2022, net debt was approximately £22mln and liquidity headroom was about £11mln, in line with expectations.
"Building on the strategic progress made so far, over the coming months we will continue to deliver against the clear priorities that the board and I believe will create a strong foundation for Joules to achieve its significant long-term potential, as well as helping the business to navigate the current challenging trading environment," said Jones.