Joules bucks retail gloom as FY sales and profit rise
Fashion brand Joules posted a jump in full-year profit and revenue on Tuesday as UK and international sales grew.
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In the year to 26 May 2019, underlying pre-tax profit rose 19.4% to £15.5m on revenue of £218m, up 17.2% on the previous year.
International revenue - which now represents 16.1% of group revenue - pushed up 43.5% to £35.1m as Joules grew the brand through wholesale partnerships and e-commerce channels mainly in the US and Germany. In the UK, meanwhile, revenue rose 13.3% to £182.9m.
Retail revenue, which includes e-commerce, stores and shows, was up 22.7% during the year to £159.1m and wholesale revenue edged up 2.8% to £57.1m.
Active customer numbers increased by 8% to 1.5 million and the full-year dividend was lifted to 2.1p a share from 2p in 2018.
Chief executive Colin Porter said: "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.
"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."
Independent retail analyst Nick Bubb said Joules' results are "good, despite the problems of their main competitors".
House broker Liberum said the results are "excellent", with pre-tax profit 5% ahead of its forecast.
"There are numerous new initiatives launching over the next few months that should not only drive incremental business but we see a broader leverage of the group’s key strengths," it said. "These will encompass further licensing agreements, enhance the web platform to maximise the LTV of the group’s 1.5m active customer database, and build upon its credentials as a leading British brand through the development of a marketplace centred around the family, home, and countryside."
At 0955 BST, the shares were down 3.1% at 247p.