Interim Results for the 26 weeks ended 28 November 2021 (“H1 FY22” or the “Period”)

H1 FY22 Highlights:

26 weeks ended

 

28 November 2021

(LY)

29 November 2020

(LY-1)

24 November 2019

 

Variance to LY

 

Variance to LY-1

Group Revenue

£127.9m

£94.5m

£111.6m

+35%

+15%

Gross Margin %

50.4%

50.2%

54.8%

+0.2%pts

-4.4%pts

PBT pre adjusting items

£2.6m

£3.7m

£8.4m

-£1.1m

-£5.8m

Statutory PBT

£2.6m

£1.3m

£1.7m

+£1.3m

+£0.9m

Net (Debt) / Cash

(£5.4m)

£15.6m

£2.1m

-£21.0m

-£7.5m

  • Joules’ brand awareness1 increased 2.0%pts to reach record levels (+2.9%pts increase on a two-year basis) and active customers2 increased by nearly 160,000 in the Period to total over 1.9m
  • Group revenue increased by 35% to £127.9m (H1 FY21: £94.5m)
    • Store revenue increased by more than 80% to £35.5m (H1 FY21: £19.7m), reflecting a very strong recovery in retail demand to almost pre-pandemic levels
    • Total e-commerce sales across the Group’s websites and third-party e-commerce partners increased by 14% against the prior period, and 53% on a two-year basis, driven by Garden Trading (acquired in February 2021) and strong performance through the Group’s digital partners
  • Gross margin increased by 0.2%pts to 50.4% (H1 FY21: 50.2%) due to an improved mix of full price sales and recovery of higher margin store revenue, offset by significant increases to freight costs and outbound Brexit duties and taxes
  • Operating expenses increased by 52.6% to £52.2m (H1 FY21: £34.2m, H1 FY20: £41.7m), reflecting:
    • The end of government support and other COVID related savings in the prior year;
    • Increased wage costs in our distribution centre;
    • Increased digital marketing costs; and
    • The acquisition of Garden Trading
  • Statutory PBT after adjusting items of £2.6m represented an increase of £1.3m on the prior year (H1 FY21: £1.3m)
  • Net debt of £5.4m (H1 FY21: net cash of £15.6m). Cash outflow was driven by normalisation of inventory and the acquisition of Garden Trading

Nick Jones, Chief Executive Officer, commented:

“Whilst the Group experienced strong levels of customer demand that resulted in good revenue growth against the prior two comparative periods, Group profitability in the first half was impacted by various factors, most notably the severe inflationary cost environment. We have a clear plan of action to simplify the business, enhance efficiencies and mitigate the cost pressures that will enable the Group to convert the strong levels of customer demand into sustainable, profitable growth.

“Whilst we acknowledge that there are areas within the business where we need to simplify our operations and improve profitability, we remain very excited in our long-term growth prospects. We have continued to see improvements in brand awareness and customer numbers, and we are confident that our broadened lifestyle proposition - which benefits from increased product and category diversification through Friends of Joules and Garden Trading - is more relevant than ever to consumers.”


Enquiries:

Joules Group plc
Nick Jones, CEO
Caroline York, CFO
Tel: +44 (0) 1858 435 255

Hudson Sandler (Financial PR)
Alex Brennan
Lucy Wollam
Tel: +44 (0) 20 7796 4133

Peel Hunt LLP, Nominated Advisor and Joint Broker
George Sellar
Andrew Clark
Tel: +44 (0) 20 7418 8900

Liberum Capital Limited, Joint Broker
John Fishley
Edward Thomas
Tel: +44 (0) 20 3100 2000

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 storesthat 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 wholesale partnerships with more than 1,000 stockists 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 1.9 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 - in the UK and internationally. 

Internationally, the brand has made good progress in its target markets of the US and Germany, where the distinctive Joules brand and products range resonate well with local customers. International markets are served by wholesale partnerships and dedicated Joules websites.

www.joules.com 
www.gardentrading.co.uk
www.joulesgroup.com