Joules H1 revenue jumps 16.2 percent

Joules Group revenue increased by 16.2 percent to 81.4 million pounds (101 million dollars) in the first half to November 27, 2016. The company’s retail revenue increased by 15.8 percent, while wholesale revenue increased 17.1 percent. Underlying operating profit was up 16.3 percent to 7.6 million pounds (9.4 million dollars) and underlying EBITDA increased by 19.6 percent to 10.9 million pounds (13.6 million dollars).

"Joules has continued to perform well during the first half of the financial year with strong growth delivered across the brand's distribution channels and target markets. Group trading over the Christmas period and in the second half of the year to date has been strong and in line with expectations. The Board remains confident in the brand's continued development both in the UK and internationally," said Colin Porter, Chief Executive of the company in a statement.

Retail revenue increased 15.8 percent

The underlying EBITDA margin increased by 40 basis points from 13.0 percent to 13.4 percent. Underlying profit before tax (PBT) increased by 19.9 percent to 7.5 million pounds (9.3 million dollars).

Retail revenue increased by 15.8 percent to 56.7 million pounds (70.8 million dollars), which the company said were driven by good growth across both Stores and ecommerce channels. Store revenue increased by 11.2 percent to 34.5 million pounds (43 million dollars). During the first half of the year, the company opened 10 new stores and operated 107 stores at the end of the period.

E-commerce revenue increased by 30.3 percent and wholesale revenue increased by 17.1 percent. The growth of international wholesale, up more than 50% in the period, helped drive a 39.3 percent increase in the Group's total international sales including international retail to represent 10.6 percent of total sales compared to 8.8 percent in H1 FY16.

Basic earnings per share for the period were 6.05 pence per share against 2.96 pence, in the first half of last year. Underlying basic earnings per share for the period were 6.8 pence against 5.7 pence last year.

Joules board announces dividend, outlook positive

The Board also declared a maiden interim dividend of 0.6 pence.

While during the period, Joules opened 11 new stores and closed one store, internationally the company made further progress in its target North American and German markets. In the US, Joules further expanded our sell-through in leading department stores with Dillards launching childrenswear in the Autumn/Winter 16 season and Nordstrom increasing product range listings in response to their customers' appetite for the brand.

Retail sales through the Christmas trading season for the seven weeks to January 8, 2017 were up by 22.8 percent against the prior year. Looking ahead, the company said, headwinds facing UK retailers are well documented and are generally projected to drive input cost inflation and margin pressure across the sector. However, the company added that with a strong brand, differentiated product offer, loyal and growing customer base, exceptional team and well-invested infrastructure, Joules is well positioned to face this period of sector uncertainty.

Picture:Joules