Joules FY16 revenues surge 14.2 percent

Revealing its results for the first time after floating on AIM, Joules Group said that its revenue for the 53 weeks period of 131.3 million pounds (176 million dollars) increased by 12.8 percent compared to the prior period. Against the comparable 52 week prior period, Group revenue increased by 14.2 percent driven by strong growth in both the retail and wholesale segments. Underlying PBT was 7.5 million pounds (10 million dollars), an increase of 41.5 percent on the prior period and underlying EBITDA increased by 28.6 percent to 13.5 million pounds (18.1 million dollars).

"FY16 was a transformational year in the development and expansion of the Joules brand which included our successful admission to AIM in May. We have delivered strong growth across our retail and wholesale channels, significantly increasing profitability by effectively leveraging our operating cost base. Our active customer base and international sales have also grown impressively, all of which is great testament to the growing strength and appeal of Joules as a premium lifestyle brand,” said Colin Porter, Chief Executive of the company.

Retail and wholesale segments witness growth

On a geographic basis, UK sales increased 11.6 percent to 118.1 million pounds (158.3 million dollars) and international sales increased 24.7 percent to 13.2 million pounds (17.7 million dollars). Retail sales, which includes stores, E-commerce and shows, continued to grow by 12.8 percent during the year as the company expanded Joules' retail coverage across the UK and ROI to 97 stores at the end of the period. This was supported by 10 new store openings and the conversion of one franchise store during the year.

During the year, Joules closed five stores taking the opportunity of lease breaks to exit where it believes, it could perform better in a different location. The company relocated one store, in Harrogate, and expanded its space in two others. In FY16, Joules expanded into a new store location type with three regional shopping centre locations - Milton Keynes, Meadowhall and Birmingham Grand Central. E-commerce continued to deliver very strong sales growth of 17.3 percent against the prior year.

Wholesale sales increased by 18.3 percent. Continued expansion in the UK was driven primarily through national multi-channel retailers such as John Lewis and Next Label as well as through smaller, independent specialist partners that have a good fit with the Joules brand. The growth of international wholesale (up 48.1 percent in the year) helped drive a 24.7 percent increase in the Group's total international sales including international retail. Excluding the impact of non-recurring international shows, total international revenues were up nearly 36 percent.

Witnessed growth across product categories

Joules delivered growth across every product category during the year, with particularly strong performances in the core womenswear category and the newer homeware, accessories and 'Baby Joule' categories. Licensed products, although relatively small in scale, also continued to perform well.

The Group has a fast growing and diverse store portfolio of 97 UK and Republic of Ireland stores including five concessions plus three franchise stores. Joules branded products are sold through selected wholesale partners, primarily in the UK, North America and Germany, supporting the expansion of the brand. The company is targeting a net 10 to 12 new stores per year in the medium term. Joules also plans to expand its presence in North America and Germany.

Picture:Joules