Continued strong brand momentum across channels and product categories

06 Jun 2017

Pre-close Trading Update

Continued strong brand momentum across channels and product categories

Joules, the premium British lifestyle brand, today provides a trading update covering the 52-week period to 28 May 2017 (the ‘Period’ or ‘FY17’), which is the Group’s first full financial period since admission to AIM on 26 May 2016. 

Group revenues increased by 19.6% year on year to £157.0 million (18.6% growth on a constant currency basis) as the Group’s strong performance in the first half of FY17 and the Christmas trading period continued during the second half of the Period.  This strong growth is a reflection of the brand’s expansion in the UK and international markets, Joules’ growing customer base, and the positive customer responses to both new and core ranges across product categories throughout the Period.

Retail revenue increased by approximately 19.4% on the prior year (19.4% on a constant currency basis).  This performance was driven by strong growth in the e-commerce channel as well as continued growth across the Group’s UK and ROI store estate where the Group opened 11 net new stores in the Period.

The Wholesale segment was up by approximately 20.3% on the prior year (17.6% on a constant currency basis).   This good performance was in line with the Board’s expectations and driven by strong growth in the Spring/Summer order-book from both our UK and international wholesale customers.

The Board anticipates reporting a strengthening in the Group gross margin against the prior year.  This is a result of a higher proportion of full price sales, reflecting the strength of the Joules brand, as well as further distribution efficiencies and a favourable product mix within international wholesale – where we have successfully been increasing the relative proportion of clothing sales.

As a result of the Group’s revenue growth and improved gross margin, combined with continued cost discipline, the Board anticipates reporting FY17 Group profit before tax comfortably ahead of its previous expectations.

The Group will announce its Preliminary Results for the 52-weeks to 28 May 2017 on Wednesday 26 July 2017.

 

Colin Porter, Chief Executive Officer, commented:

“The appeal and strength of the Joules brand continues to resonate with our loyal and growing customer base.   The brand’s growth continued in the second half of the financial year, building on the strong performance in H1.  As a result of the brand’s momentum across channels and product categories, the Board anticipates reporting profits for the full year comfortably ahead of its previous expectations.

Our focus on our brand and our customers as well as our steadfast commitment to product quality remain the bedrock for the Group’s growth and success.  Underpinned by these strengths, the Board has confidence that Joules’ momentum will continue into FY18, despite the uncertain macro-economic outlook.  This confidence is supported by the growth in our customer base and our exciting new store opening plans, as well as a robust Autumn/Winter wholesale order-book both in the UK and internationally.”

 

This announcement contains inside information.

 

Enquiries:

 

Joules Group plc

Tel: +44 (0) 1858 435 255

Colin Porter, CEO

Marc Dench, CFO

 

Hudson Sandler (Financial PR)

Tel: +44 (0) 20 7796 4133

Alex Brennan

Lucy Wollam

 

Peel Hunt LLP, Nominated Advisor

Tel: +44 (0) 20 7418 8900

Dan Webster

Adrian Trimmings

George Sellar

 

Liberum Capital Limited

Tel: +44 (0) 20 3100 2000

John Fishley

Joshua Hughes

 

 

Joules - ‘a premium lifestyle brand with an authentic British heritage’

Established in Britain by Tom Joule nearly three decades ago, Joules is a premium lifestyle brand with an authentic heritage.

A true multi-channel lifestyle brand, Joules carefully designs clothing, footwear and accessories for women, men and children, as well as an expanding range of homewares, toiletries and eyewear collections, with personality to match those of its customers’ colourful and uplifting outlooks, available through its own retail stores, online, rural shows & events and wholesale channels.

Quality, Britishness, family values, colour and humour make Joules stand out from the crowd. This approach, along with an unwavering attention to detail, and drive to surprise and delight its customers with unexpected product details, remain at the heart of everything Joules creates and has been central to the brand’s success and expansion.

 

www.joules.com  |  www.joulesgroup.com

 

Joules Fast Facts

  • Joules is an international brand, available in the UK, USA, Germany, France and other European markets
  • Joules operates 108* stores in the UK and ROI across a range of location types, has a significant online business, and a well-established wholesale business with 1500 stockists worldwide including John Lewis, Next Label and Nordstrom
  • Joules’ talented in-house print design team lovingly hand-draw all of the prints you see within its collections each season
  • Joules is proud of its British heritage and still has strong roots in Market Harborough, the site of its first shop and head office – since day one
  • Colin Porter became CEO in September 2015, with Tom Joule focusing on the creative side of the business in his capacity as Chief Brand Officer
  • Joules won Mainstream Brand of the Year at the Drapers Awards 2016 and has previously won the Drapers Best British Fashion Retailer of the Year at the 2015 awards

 

* Figures are stated as at 28 May 2017