Joules reveals 17% rise in revenue, shares up 7.8%

Joules reveals 17% rise in revenue, shares up 7.8%

joules

Joules has announced a 17.6% rise in revenue in the 26 weeks to 25 November. The fashion retailer has raised its first-half underlying profit expectations.

The group has also said that it will be carrying out contingency plans in the form of a third-party distribution facility in the EU to prevent disruption amid a hard Brexit. 

Joules said: “These plans include establishing an EU-based third-party distribution facility; scheduling earlier inbound product deliveries for our spring/summer 2019 ranges; preparation for expected increased administrative activities; and hedging US dollar requirements more than 12 months forward.”

The group “anticipates that trading conditions in the UK will remain challenging over the near term, with continued macroeconomic uncertainty, rapidly changing consumer shopping behaviours and a highly competitive environment.”

Additionally, the fashion retailer has ordered in the Spring/Summer 2019 collection earlier than usual in order to prevent Brexit disruption and possible devaluing of the pound.

Chief executive Colin Porter said: “I am delighted to update on what has been another period of strong performance for Joules despite challenging trading conditions.”

“This performance, which is ahead of our initial expectations for the Period, is a testament to the strength of the Joules brand, the engagement of our loyal customers with our product collections, and our fantastic teams.”

“In the UK, our ‘total retail’ cross-channel model, underpinned by investment in infrastructure, has proven to be well suited to today’s rapidly changing consumer shopping behaviours. In addition, our international wholesale business continues to make excellent progress by both increasing sales to existing accounts and developing new accounts.”

“We have an outstanding brand, good momentum and a growing customer base and we look forward to the second half of the financial year with confidence.”

The interim financial results will be announced on 23 January.

In morning trade, shares in the group (LON: JOUL) are trading +7.83% (0953GMT).