Joules guides towards upper end of expectations for profits

Lifestyle brand Joules anticipates full-year profits will come in at the upper end of expectations after witnessing the continued expansion of its brand across channels and markets.

Joules saw group revenues increase 17.2% to £218m over the year ending on 26 May as strong momentum from the first half of the year and the Christmas trading period carried into the second half.

The AIM-listed retailer said the growth, achieved against the backdrop of a "challenging sector trading environment", was a testament to the strength of its brand, the appeal of its products and the continued strong growth of its international business, which now represents approximately 16% of revenues.

Retail and wholesale revenue figures were impacted by the transition of some UK wholesale accounts to its retail concession model - a move that Joules said provided it with "greater future trading flexibility".

Wholesale revenues benefited from strong growth in the US and Germany, as well as growth in the UK, while licensing revenue delivered "very strong growth", driven by the success of existing and new licensing partnerships.

Chief executive Colin Porter said: "The group's flexible and integrated 'total retail' model is well suited to meet rapidly evolving consumer shopping behaviours.

"Supported by this strong momentum and our outstanding brand, growing customer base and skilled colleagues across the world, we continue to look forward with confidence despite well-documented sector headwinds."

As of 0930 BST, Joules shares had climbed 5.88% to 270p.