Online offsets high street dip at Joules

Joules

Premium fashion brand Joules (LON: JOUL) is confident that its strong online sales will help to counteract the latest lockdown.

In the first 22 weeks of the current financial year, AIM-quoted Joules online sales were 35% higher and they accounted for 70% of all retail sales. Store sales were down by 18%, which is similar to the experience of Next and better than other rivals.

Peel Hunt had been expecting 30% growth in online sales in the first half. It has left its forecast unchanged due to the uncertainty of the latest lockdown. The broker still expects a return to profit this year.

Customers

There are 1.5 million active customers, which is a 30% increase on 12 months ago. This should help to fuel growth in online sales.

At 104.5p, the shares are trading on 26 times prospective earnings. The increased customer base should enable further profit improvement in the following years.

It is possible that the share price could drift back over the lockdown period and that could provide a buying opportunity.