Joules’ profits speed ahead as retailer defies high street gloom
The lifestyle brand has delivered higher-than-expected profits for the year.
Joules has defied the gloom on the high street with high-than-expected profits for the year.
Group revenue at the apparel and homeware brand was up 18.4% to £185.9 million in the year ended May 27, with underlying profit before tax surging 28.5% to £13 million from £10.1 million.
Analysts had been expecting profits of around £12.5 million.
The retailer, which now operates in the US, Germany, France, and other European countries, reported a 35.7% increase in international revenues, which now make up 13.1% of the group’s overall sales.
Wholesale revenues were up by 24.1% to £55.5 million.
Chief executive Colin Porter said: “It has been another strong year of growth for the Joules brand, with our continued expansion within the UK and international markets enabling the group to a profit performance ahead of initial expectations.”
Joules, which describes itself as a lifestyle brand rather than a just traditional clothing retailer, has 123 stores in the UK and Ireland and also sells its products through wholesale deals with John Lewis and Next.
The company will launch concessions in John Lewis and Next over the coming year.
In the US, Joules has a wholesale model and has introduced its brand through department stores such as Nordstrom and Dillard’s.
“Joules is an aspirational brand, renowned for colourful, family-oriented apparel and homeware ranges that are targeted at a broad and increasingly international demographic,” said Paul Hickman, analyst at Edison Investment Research.
“Over its short history on the market, Joules has defied wider macroeconomic uncertainties, consistently delivering double-digit sales growth across all channels and is developing a track record of beating market expectations.”
Liberum analysts described Joules’ full-year figures as “outstanding”.
“Joules has a strong brand, heritage, low fashion risk and wide appeal. It is gaining share in the fast-growing premium lifestyle sector where multiple growth levers exist including stores, online, wholesale and international,” they said.