ANNUAL RESULTS FOR THE 52 WEEKS ENDED 26 MAY 2019 (THE 'PERIOD')

Continued growth across channels and product categories, both in the UK and internationally.

Highlights:


52 weeks ended

26 May
2019

27 May
2019


Change

Group revenue£218.0m£185.9m+17.2%
Underlying profit before tax1£15.5m£13.0m+19.4%
Underlying pro forma basic EPS214.1p11.8p+19.4%
  • Group revenue increased by 17.2% to £218.0 million (up 16.8% in constant currency3)
    • Comparable revenue growth4 of approximately 13% - excluding impact of transition of wholesale accounts to retail concession model in the Period
    • International revenue increased by 43.5% (40.1% constant currency) - now represents 16.1% of Group revenue
  • Underlying profit before tax1 increased by 19.4% to £15.5 million
  • Statutory profit before tax increased by 14.9% to £12.9 million
  • Group gross margin declined 90 bps to 54.8%, in line with expectations
  • Underlying pro forma basic EPS2 increased by 19.4% to 14.1 pence, with statutory basic EPS up
    by 17.3% to 11.6 pence
  • Active customers5 increased by 8% to 1.5 million
  • Net cash of £5.8 million, an improvement of £5.8 million on the prior year
  • Final dividend of 1.35 pence per share proposed; FY19 total 2.1 pence per share (FY18: 2.0 pence per share)

COLIN PORTER, CHIEF EXECUTIVE OFFICER, COMMENTED:

"Joules has delivered another strong performance this year with growth across channels and product categories, both in the UK and internationally. These results in a challenging retail sector reflect the strength and appeal of the Joules brand, the flexibility of our ‘Total Retail’ model, and the success of our carefully managed product extension strategy.

I would like to take this opportunity to extend my thanks to all members of the Joules team for their hard work during the Period. Their passion, expertise and commitment to delivering great products and experiences for our customers continues to drive Joules’ growth and success.

We are pleased with the Group’s performance to date in the early stages of our new financial year, with trading in line with our expectations. Looking ahead, whilst the consumer retail environment is anticipated to remain challenging, particularly in the UK, the Board and I believe that Joules remains well-positioned for continued success both in the UK and our target international markets.”

1. Underlying PBT is a non-GAAP measure that, to facilitate meaningful comparison across periods, excludes the expense of share-based compensation plans. A reconciliation to statutory PBT is shown below and further information is provided in the Financial Review.
2. Underlying pro forma basic earnings per share (‘EPS’) excludes expense of share-based compensation plans and reflects a consistent tax rate across periods. Further information is provided in the Financial Review.
3. Constant currency comparatives apply a consistent exchange rate to the translation of financial results of overseas subsidiaries.
4. Comparable revenue growth is a non-GAAP measure, to facilitate meaningful comparison across periods, given the conversion of two large UK wholesale accounts to the Retail concession model during the Period. The growth is based on the prior period being restated as if the retail concession model had been operated consistently across both periods. Note, the restatement is unaudited and approximate.
5. Customer registered on our database who has transacted in the last 12 months.

Reconciliation to statutory profit before tax:

£MILLIONFY19FY18
Underlying profit before tax15.513.0
Share-based compensation(2.6)(1.8)
Statutory profit before tax12.911.2

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 and Joint Broker

Tel: +44 (0) 20 7418 8900

Dan Webster

George Sellar

Guy Pengelley

Liberum Capital Limited, Jointed Broker

Tel: +44 (0) 20 3100 2000

John Fishley

Edward Thomas

JOULES - ‘A PREMIUM LIFESTYLE BRAND WITH AN AUTHENTIC BRITISH HERITAGE’

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

The Joules story began in 1989, when Tom Joule started selling clothing on a stand at a country show in Leicestershire. Today, it is a true multi-channel lifestyle brand; its products are available through its ecommerce websites, retail stores, at rural shows and events and wholesale channels both in the UK and internationally.

Joules carefully designs and sells clothing, footwear and accessories for women, men and children, as well as ever-growing homeware, eyewear and licensed product collections.

The brand’s values of quality, Britishness, family and humour, coupled with its unique use of colour and print set Joules apart. This approach, along with an unwavering attention to detail and drive to surprise and delight its customers with unexpected details, has been central to the brand’s success and remains at the heart of everything Joules creates.

During 2019 the brand is celebrating its 30th birthday, marking three decades of Joules delivering fun, quality clothing for families and friends to make lasting memories together. The brand has some very exciting celebrations planned throughout the year, built around the special moments shared with its customers since the Joules story began back in 1989.

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 has a significant online business, operates across 125* stores in the UK and ROI across a range of location types, and has a well-established wholesale business with over 2,000 stockists worldwide, including John Lewis and Nordstrom
  • Joules’ talented in-house print design team lovingly hand-draw all the prints and unexpected unique details 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
  • Joules’ performance has been recognised through a number of awards including:
    • Best Licensed Fashion or Talent Brand Award - Brand & Lifestyle Licensing Awards 2019
    • Best Licensed Gifting Product Award - Brand & Lifestyle Licensing Award 2019
    • The Best Fashion Retailer (Mark of Excellence) - Retail Week Awards 2018 and 2019
    • Fashion Retail Business of the Year (between £101m-£500m turnover) - Drapers Awards
      2017 and 2018
    • Mainstream Brand of the Year – Drapers Awards 2016 and 2017

* As at 26 May 2019, excluding concessions (34 concessions)