6 Jun 2019 07:00
Joules Group plc
('Joules' or the 'Group')
Pre-close Trading Update
Continued expansion of the Joules brand across channels and markets
Full Year PBT anticipated to be at the upper end of analysts' expectations
Joules, the premium British lifestyle brand, today provides a trading update covering the 52-week period to 26 May 2019 (the 'Period' or 'FY19').
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
Enquiries:
Joules Group plc | Tel: +44 (0) 1858 435 255 |
Colin Porter, CEO Marc Dench, CFO
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Hudson Sandler (Financial PR) | Tel: +44 (0) 20 7796 4133 |
Alex Brennan Lucy Wollam
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Peel Hunt LLP, Nominated Advisor | Tel: +44 (0) 20 7418 8900 |
Dan Webster George Sellar Guy Pengelley
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Liberum Capital Limited | Tel: +44 (0) 20 3100 2000 |
John Fishley Edward Thomas |
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Joules - 'a premium lifestyle brand with an authentic British heritage'
Established in Britain by Tom Joule three decades ago, Joules is a premium lifestyle brand with an authentic heritage.
The Joules story began in 1989, when Tom Joule started selling clothing on a stand at a country show in Leicestershire. Today, it is a true multi-channel lifestyle brand; its products are available through its own retail stores, online, at rural shows and events and wholesale channels both in the UK and internationally.
Joules carefully designs and sells clothing, footwear and accessories for women, men and children, as well as ever-growing homeware, eyewear and licensed product collections.
The brand's values of quality, Britishness, family and humour, coupled with its unique use of colour and print set Joules apart. This approach, along with an unwavering attention to detail and drive to surprise and delight its customers with unexpected details, has been central to the brand's success and remains at the heart of everything Joules creates.
During 2019 the brand is celebrating its 30th birthday, marking three decades of Joules delivering fun, quality clothing for families and friends to make lasting memories together. The brand has some very exciting celebrations planned throughout the year, built around the special moments shared with its customers since the Joules story began back in 1989.
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 124* stores in the UK and ROI across a range of location types, has a significant online business and 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 and unexpected unique details 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' performance has been recognised through a number of awards including:
· Best Licensed Fashion or Talent Brand Award - Brand & Lifestyle Licensing Awards 2019
· Best Licensed Gifting Product Award - Brand & Lifestyle Licensing Award 2019
· The Best Fashion Retailer (Mark of Excellence) - Retail Week Awards 2018 and 2019
· Fashion Retail Business of the Year (£101m and £500m turnover) - Drapers Awards 2017 and 2018
· Drapers Mainstream Brand of the Year - 2016 and 2017
*As at 26 May 2019, excluding concessions (34 concessions)