Joules turnover increases 19.6 percent in FY17

Joules Group revenue increased by 19.6 percent or 18.6 percent on constant currency basis to 157 million pounds (204 million dollars) for the 52 weeks to May 28, 2017, from 131.3 million pounds (170 million dollars) in FY16, with retail revenue increasing by 19.4 percent and wholesale by 20.3 percent or 17.6 percent on a constant currency basis. The company said, sales in international markets, which are predominantly wholesale, increased by 36.2 percent or 29.6 percent on a constant currency.

“FY17 was another very exciting year for the group as the Joules brand continued to expand and develop across distribution channels and product categories both in the UK and internationally. The strong progress delivered during the year was again underpinned by the Group’s steadfast focus on its growing and loyal customer base, product quality and delivering engaging experiences across all channels. The Board remains confident that the group’s momentum will continue into FY18, despite the uncertain macro-economic outlook,” said Colin Porter, Joules’ Chief Executive Officer in a statement.

Financial highlights of the fiscal under review

Underlying PBT was 10.1 million pounds (13.1 million dollars), an increase of 34 percent on the prior period. Underlying EBITDA increased by 25.3 percent to 16.9 million pounds (22 million dollars), while the underlying EBITDA margin increased by 50 basis points from 10.3 percent to 10.8 percent.

The company’s retail sales, which includes stores, e-commerce and shows, grew by 19.4 percent at constant and current exchange during the year, which reflected good growth from both stores and e-commerce, which increased by 29.4 percent to now represent 34.8 percent of total retail revenue.

The group’s store network across the UK and ROI continued to expand to 108 stores at the end of the period. Joules opened 13 stores and closed two, with 10 of the net new stores being opened during the first half of the year. The company also relocated three stores and extended a further three. The group also continued to develop its online offering following the successful relaunch of the ecommerce platform in September 2015. Traffic from mobile and tablet devices continued to grow, representing over 75 percent of the total number of visitors.

Wholesale revenues rose 20.3 percent

Wholesale revenue experienced further good growth, up by 20.3 percent or 17.6 percent in constant currency to 44.8 million pounds (58.3 million dollars). In the UK, the company said, wholesale expansion was driven through both national multi-channel retailers such as John Lewis and Next Label as well as through smaller, independent specialist retailers that have a good fit with the Joules brand.

Strong international wholesale growth helped to drive international sales (including international retail) up 36.2 percent and they now represent 11.5 percent of total group revenue. In the US, Joules further expanded its presence in key department stores, with Dillards launching childrenswear for the autumn/winter 2016 season and Nordstrom increasing Joules’ product range listings and the number of doors. Citing growth opportunities for the brand in the US market, during the year, Joules started the process to bring the management of over 600 independent stockist accounts in-house, following the termination of its agreement with the third-party distributor.

In Germany Joules continued to perform in line with expectations and experienced good growth in the independent retailer segment where it now has over 400 stockists.

The board is recommending a final dividend of 1.2 pence per share in respect of FY17, which brings the total dividend for FY17 to 1.8 pence per share.

Photo: Joules