Joules posts strong growth in first half revenue and profit

British lifestyle brand Joules, for the 26 weeks ended November 25, 2018 reported 17.6 percent increase in revenue to 113.1 million pounds, reflecting strong growth across both retail and wholesale segments. Underlying profit before tax increased by 14.7 percent to 10.7 million pounds, while gross margin at 54.8 percent was 80 basis points below the comparable period in the prior year.

Commenting on the first half trading, Colin Porter, the company’s Chief Executive, said in a statement: “Joules has delivered another strong performance in the first half of year. As previously reported, this outcome is ahead of our initial expectations for the period and has been achieved despite challenging trading conditions. We have continued to trade well since the period-end with a good performance through the festive period and positive customer reactions to our new collections.”

Highlights of Joules’ H1 performance

Retail revenue at Joules increased by 21.2 percent to 79.9 million pounds, up approximately 10 percent when adjusting for the transition of wholesale accounts to retail concession model in the period. Ecommerce now representing 46.5 percent of all retail sales witnessed strong sales growth. The company opened five new stores in the first half and at the end of the period, operated 123 owned stores, in addition to 34 concessions and three franchises.

The company added that wholesale revenue increased by 8 percent to 32.5 million pounds, approximately 26 percent growth adjusting for the transition of wholesale accounts to retail concession model in the period. Wholesale revenue in North America grew by over 100 percent in the period.

Revenue from licensing activity increased to 0.8 million pounds with improved performance within existing licensing partnerships, as the company increased distribution and grew the product range, and the launch of new brand licence partnerships in new product categories including Joules watches.

Total international revenue increased by 64.2 percent and now represents 15.8 percent of total group revenue, while international wholesale grew by 78 percent in constant currency, with growth in existing accounts and the addition of several new accounts.

Basic earnings per share for the period were 8.3 pence compared to 7.3 pence in the first half of 2018, while on underlying pro forma, basic earnings per share for the period were 9.7 pence compared to 8.5 pence last year. The Joules board has declared an interim dividend of 0.75 pence.

Picture:Facebook/Joules