Joules Group plc – Pre-close Trading Update
Joules, the premium British lifestyle brand, today provides a trading update covering the 52-week period to 26 May 2019.
Group revenue for the Period increased by 17.2% to £218.0m (FY18: £185.9m) as the Group’s strong momentum through the first half of the year and the Christmas trading period continued into the second half. This growth, achieved against the backdrop of a challenging sector trading environment, is testament to the strength of the Joules brand, the appeal of our products and the continued strong growth of our international business, which now represents approximately 16% of Group revenue (FY18: 13%).
Retail and Wholesale revenue figures in the Period were impacted by the transition of some UK wholesale accounts to the retail concession model – a move that provides Joules greater future trading flexibility. For comparative purposes the approximate revenue growth excluding the impact of this transition is disclosed in the table below:
|
52-week period to 26 May 2019 |
|||
|
Revenue |
£million |
Reported growth % |
Approx. comparative growth¹ % |
|
Retail |
159.1 |
22.7% |
10% |
|
Wholesale |
57.1 |
2.9% |
22% |
|
Other (Licensing) |
1.8 |
147.3% |
N/a |
|
Group |
218.0 |
17.2% |
13% |
The Group continued to benefit from its flexible and integrated ‘total retail’ model as well as a steadfast focus on delivering a seamless and enjoyable experience to customers, irrespective of how they choose to shop the Joules brand. E-commerce performed particularly well in the Period, representing half of Group Retail revenue.
Wholesale revenue benefited from strong growth in our target international markets, the US and Germany, as well as growth in the UK. Within Wholesale, international now represents approximately half of sales, reflecting the continued expansion of the Joules brand overseas.
Licensing revenue delivered very strong growth during the Period, driven by the success of both existing and new licensing partnerships.
The Group’s robust gross margin performance reported in the first half of the year was maintained throughout the Period. As a result of the Group’s revenue growth and disciplined cost management, the Board anticipates announcing Underlying Profit Before Tax (‘PBT’) that is at the top end of the range of external analyst forecasts2 for the Period.
The Group will announce its Preliminary Results for the 52-week period to 26 May 2019 on Tuesday 23 July 2019.
Colin Porter, Chief Executive Officer, commented:
“As Joules celebrates its 30th anniversary, this strong performance, particularly in our international markets and across our E-commerce and Licensing channels, reflects the strength of our distinctive brand as well as the appeal of our products across an ever-increasing range of lifestyle categories.
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.”
¹ Comparative growth percentages show the approximate growth for Retail and Wholesale on the basis of the prior period being restated to reflect the impact of the retail concession model. Note, the prior period restatement is unaudited and approximate
2 Company compiled range of external sell-side analyst forecasts for the Period is £14.8 million to £15.3 million