Joules strong in H1, season ahead looks good and US business grows

By

Sandra Halliday

Published
Dec 7, 2016

Women’s, men’s and kidswear retailer Joules said Wednesday that the first half of its fiscal year went well with a 16.2% revenue rise in the six months to November 27. It also said Christmas trading looks good and it’s upbeat for the season ahead.

The healthy uptick in H1 reflected the UK brand's increasing footprint, growing customer base and the strong performance of both new and core ranges across product categories.

Retail revenue increased by 15.8% to £56.7m, driven by good growth across stores and e-commerce. The group continued to expand its retail presence with the opening of a net 10 new stores during the period.

Wholesale revenue increased by 17.2% to £24.5m, as anticipated, given the previously reported growth in the autumn/winter 2016 wholesale order-book in all markets. The brand has continued to develop in international markets including expanded product ranges within key US wholesale accounts as well as the launch of kidswear in a new partnership “with a leading US department store.”

Gross margin in the period is anticipated to have increased by around 100 basis points year-on-year, benefitting from a higher proportion of full-price sales, enhanced distribution efficiencies, and a favourable product mix within international wholesale.

CEO Colin Porter said the company is confident about the second half of the financial year and beyond, “despite the uncertain macro-economic outlook…We have seen strong growth in our wholesale order book for spring/summer 17 and we are well positioned for the Christmas trading period."