TIDMJOUL
RNS Number : 4497J
Joules Group plc
05 December 2018
Joules Group plc
('Joules' or the 'Group')
Pre-close Trading Update
Strength of the Joules brand and flexible 'total retail' model
deliver first half profits ahead of initial expectations
Joules, the premium British lifestyle brand, today provides a
trading update covering the 26-week period to 25 November 2018, the
first half of the Group's 2019 financial year (the 'Period' or
'first half').
Group revenue for the Period increased by 17.6% to GBP113.1
million (H1 FY18: GBP96.2m). This result, in what has been a
well-documented challenging period for the sector, reflects the
strength of the Joules brand, the appeal of our products, the
flexibility of the Group's 'total retail' model in the UK and the
rapid growth of our international business, which now represents
approximately 16% of Group revenue (H1 FY18: 11.3%).
Retail and Wholesale revenue figures in the Period were impacted
by the transition of some UK wholesale accounts to a retail
concession model, a model that provides greater future trading
flexibility. Approximate revenue growth excluding the impact of
this transition is disclosed for comparative purposes:
26-week period to 25 November 2018
Revenue GBPmillion Reported growth Approx. comparative
% growth(1) %
----------- ---------------- --------------------
Retail 79.9 21.2% 10%
----------- ---------------- --------------------
Wholesale 32.5 8.0% 26%
----------- ---------------- --------------------
Other 0.8 232.3% N/A
----------- ---------------- --------------------
Group 113.1 17.6% 14%
----------- ---------------- --------------------
Retail revenue growth continues to be driven by our focus on
delivering a seamless and enjoyable experience to customers,
irrespective of how, when and where they want to shop the Joules
brand. E-commerce performed particularly well in the first half and
now represents nearly fifty percent of all retail sales. The
Group's integrated cross-channel ('total retail') model is well
suited to meet changing consumer shopping behaviours.
Wholesale revenue benefited from continued strong growth in our
target international markets, the US and Germany, and good UK
performance, in line with management expectations. International
sales now represent approximately half of total wholesale sales,
reflecting the continued expansion of the Joules brand
overseas.
Given this sales performance, the Board anticipates announcing a
level of Underlying Profit Before Tax (PBT) that is slightly ahead
of initial expectations for the Period.
Looking ahead, the Board anticipates that trading conditions in
the UK will remain challenging over the near term, with continued
macroeconomic uncertainty, rapidly changing consumer shopping
behaviours and a highly competitive environment. Contingency plans
have been put in place to mitigate the expected disruption that
could arise in the event of a 'hard Brexit'. These plans include
establishing an EU based 3(rd) party distribution facility;
scheduling earlier inbound product deliveries for our Spring/Summer
2019 ranges; preparation for expected increased administrative
activities; and hedging US Dollar requirements more than 12 months
forward.
The strength of the Joules brand as well as its loyal customer
base; flexible model; and rapidly growing international business
position the Group well for continued growth. These attributes,
combined with the robust first half performance and a strong
Spring/Summer 2019 wholesale order-book, give the Board confidence
in the Group achieving full year 2019 PBT in line with its
expectations.
Colin Porter, Chief Executive Officer, commented:
"I am delighted to update on what has been another period of
strong performance for Joules despite challenging trading
conditions. This performance, which is ahead of our initial
expectations for the Period, is testament to the strength of the
Joules brand, the engagement of our loyal customers with our
product collections, and our fantastic teams.
In the UK, our 'total retail' cross-channel model, underpinned
by investment in infrastructure, has proven to be well suited to
today's rapidly changing consumer shopping behaviours. In addition,
our international wholesale business continues to make excellent
progress by both increasing sales to existing accounts and
developing new accounts.
We have an outstanding brand, good momentum and a growing
customer base and we look forward to the second half of the
financial year with confidence."
The Group will announce its Interim Results for the 26-week
period to 25 November 2018 on Wednesday 23 January 2019.
(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.
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 Tel: +44 (0) 20 7418
8900
Dan Webster
George Sellar
Liberum Capital Limited Tel: +44 (0) 20 3100
2000
John Fishley
Joshua Hughes
Joules - 'a premium lifestyle brand with an authentic British
heritage'
Established in Britain by Tom Joule nearly three decades ago,
Joules is a premium lifestyle brand with an authentic heritage.
A true multi-channel lifestyle brand, Joules carefully designs
and sells clothing, accessories and homeware for women, men and
children, with personality to match the colourful and uplifting
outlooks of its growing community of customers. Its products are
available through its own retail stores, online, rural shows and
events and wholesale channels.
Quality, Britishness, family values, colour and humour make
Joules stand out from the crowd. This approach, along with an
unwavering attention to detail, and drive to surprise and delight
its customers with unexpected product details, has been central to
the brand's success and expansion and remains at the heart of
everything Joules creates.
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 operates 123* stores in the UK and ROI across a range
of location types, has a significant online business 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 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
-- Colin Porter joined as COO in 2010 and became CEO in
September 2015, with Tom Joule focusing on the creative side of the
business in his capacity as Chief Brand Officer
-- Joules received Mark of Excellence for The Best Fashion
Retailer at the Retail Week Awards 2018
-- Joules recently won Fashion Retail Business of the Year
(between GBP101m and GBP500m turnover) at the Drapers Awards 2018.
This was the second year in a row that the brand was awarded
Fashion Retail Business of the Year. The Group was previously
awarded Drapers Mainstream Brand of the Year in both 2017 and 2016,
and also won Best British Fashion Retailer of the Year at the 2015
Drapers awards.
*As at 25 November 2018, excluding concessions
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END
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