TIDMJOUL
RNS Number : 7880V
Joules Group plc
05 December 2019
5 December 2019
Joules Group plc
('Joules' or the 'Group')
Pre-close Trading Update
Retail growth and improved retail gross margin despite
challenging trading conditions
Joules, the premium British lifestyle brand, today provides a
trading update for the first half of the financial year to 31 May
2020 ('H1'). The figures in this trading update are stated on a
comparative basis to include the Black Friday trading period in
both years ('Comparative Period')(1) .
Against the widely publicised challenging trading environment
the Group has delivered a robust performance with revenue growth of
1.3% for the Comparative Period.
Retail revenue increased by 3.1%, with an improved gross margin
rate, as a result of a disciplined approach to promotional
activity. This revenue performance was driven by strong e-commerce
growth that was supported by our distinctive product offer,
enhancements to the customer proposition and continued growth in
our active customer base.
Customers have continued to respond well to our product offer
and our flexible 'Total Retail' model that seamlessly integrates
the store and online experience. Following a challenging September,
as experienced across the sector, we have seen positive trading
momentum across Joules' own e-commerce and store channels over the
last two months, with revenue up by over 9%. On the back of this
positive performance the Group is opening four new stores before
Christmas, in desirable locations and on attractive terms.
Wholesale revenue decreased by 3.8% reflecting the conversion of
some of our larger accounts to retail concessions last year and the
continued challenging UK trading environment.
International revenue continued to grow and represents
approximately 17% of Group revenue in H1 (H1 FY19: 15.8%), with
continued growth of our US wholesale business and very strong
growth across our international e-commerce markets, demonstrating
the strengthening international appeal of the Joules brand.
In September, we launched 'Friends of Joules', a curated digital
marketplace for third-party sellers to sell their complementary
products on the Joules website. We have seen a really positive
early customer response to this exciting new initiative.
Whilst the UK trading environment is anticipated to continue to
remain challenging, the performance and momentum of our retail
channels and our clean inventory position as we approach the
important Christmas trading period give us confidence that we will
continue to deliver growth through the second half of the year.
Nick Jones, Chief Executive Officer, commented:
"Joules has delivered further profitable growth during the
period despite the continued challenging trading environment. This
performance again reflects the appeal of the brand, the flexibility
of our 'Total Retail' model and the hard work and skill of our team
who have not only helped deliver growth in this tougher climate but
have also launched innovative new initiatives like 'Friends of
Joules' that create future growth opportunities.
Since joining the business in September, I have been struck by
the exceptional strength of the Joules brand as well as its clear
potential for growth across channels, markets and product
categories. We continue to invest in our proposition to meet
changing customer expectations in a scalable and profitable way
and, with positive momentum across both digital and physical
channels, we are well placed as we enter the important Christmas
trading period."
The Group will announce its Interim Results on Tuesday 21
January 2020.
1The Black Friday trading period in FY20 falls into H2 rather
than H1 as was the case in FY19. The Comparative Period is 27 May
to 3 December 2019 compared to 28 May to 4 December 2018. Revenue
for the 26 weeks to 24 November 2019 (H1) is disclosed in the
appendix below.
Appendix: revenue growth for the 26 weeks to 24 November 2019
(H1) is disclosed below:
26 weeks to 24 Comparative
November 2019 period
Revenue GBPmillion Growth % Comparative
growth %
----------- --------- ------------
Retail 79.9 0.0% 3.1%
----------- --------- ------------
Wholesale 30.8 (5.1%) (3.8%)
----------- --------- ------------
Other 0.9 6.3% 9.4%
----------- --------- ------------
Group 111.6 (1.4%) 1.3%
----------- --------- ------------
Enquiries:
Joules Group plc Tel: +44 (0) 1858 435
255
Nick Jones, CEO
Marc Dench, CFO
Hudson Sandler (Financial PR) Tel: +44 (0) 20 7796
4133
Alex Brennan
Lucy Wollam
Peel Hunt LLP, Nominated Advisor Tel: +44 (0) 20 7418
and Joint Broker 8900
Dan Webster
George Sellar
Guy Pengelley
Liberum Capital Limited, Joint Broker Tel: +44 (0) 20 3100
2000
John Fishley
Edward Thomas
Joules - a premium lifestyle brand with an authentic British
heritage
Established in Britain by Tom Joule three decades ago, Joules is
a premium lifestyle brand with an authentic heritage.
The Joules story began in 1989, when Tom Joule started selling
clothing on a stand at a country show in Leicestershire. Today, it
is a true multi-channel lifestyle brand; its products are available
through its e-commerce websites, retail stores, at rural shows and
events and wholesale channels both in the UK and
internationally.
Joules carefully designs and sells clothing, footwear and
accessories for women, men and children, as well as ever-growing
homeware, eyewear and licensed product collections.
The brand's values of quality, Britishness, family and humour,
coupled with its unique use of colour and print set Joules apart.
This approach, along with an unwavering attention to detail and
drive to surprise and delight its customers with unexpected
details, has been central to the brand's success and remains at the
heart of everything Joules creates.
During 2019 the brand is celebrating its 30(th) birthday,
marking three decades of Joules delivering fun, quality clothing
for families and friends to make lasting memories together.
www.joules.com www.joulesgroup.com
Joules Fast Facts
-- Joules is an international brand, available in the UK, USA,
Germany and other international markets
-- Joules has a significant online business, operates across
124* stores in the UK and ROI across a range of location types and
has a well-established wholesale business with over 2,000 stockists
worldwide
-- Joules' talented in-house print design team lovingly
hand-draw all the prints and unexpected unique details you see
within its collections each season
-- Joules is proud of its British heritage and still has strong
roots in Market Harborough, the site of its first shop and head
office - since day one
-- Nick Jones joined the business as CEO in September 2019,
whilst Tom Joule continues to focus on the creative side of the
business in his capacity as Chief Brand Officer
-- Joules' performance has been recognised through a number of awards including:
-- Mainstream Brand of the Year - Drapers Awards 2019, 2017 and 2016
-- Best Licensed Fashion or Talent Brand Award - Brand & Lifestyle Licensing Awards 2019
-- Best Licensed Gifting Product Award - Brand & Lifestyle Licensing Award 2019
-- The Best Fashion Retailer (Mark of Excellence) - Retail Week Awards 2019 and 2018
-- Fashion Retail Business of the Year (between GBP101m-GBP500m
turnover) - Drapers Awards 2018 and 2017
*As at 24 November 2019, excluding concessions and franchises
(33 concessions and 3 franchise stores)
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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