Joules interim profit rises, sees full year 'slightly ahead' of views

Joules posted a jump in interim profit and revenue on Wednesday on the back of growth in retail and wholesale, as the fashion retailer said it now expects profit for the full year to be “slightly ahead” of analysts’ expectations.

In a trading update for the 26 weeks to 26 November 2017, the group said statutory pre-tax profit was up 22.8% to £8.3m, while underlying pre-tax profit rose 24.3% to £9.3m, on revenue of £96.2m, up 18.2% on the same period a year ago.

Retail revenue was up 16.2% in the period, with e-commerce sales 19.7% higher and store sales up 14.2%. Meanwhile, wholesale revenue increased by 23% and revenue in the international business was 26.4% higher and now represents 11.3% of group revenue.

The active customer base increased by 18% to 1.09m and the group lifted its interim dividend to 0.7p per share from 0.6p the year before.

The company said that it has continued to trade well since the end of the period, with retail sales through the Christmas season for the seven weeks to 7 January up 19.2%. In light of its performance to date, it now reckons full-year profit will be slightly ahead of the range of analysts' expectations.

Chief executive Colin Porter said: "The Joules brand has continued to perform very well, delivering growth in customer numbers and further expansion across channels, product categories and target markets.

“The creativity, energy and ability of our entire team remains critical to driving the business forward. I would like to take this opportunity to thank all colleagues across the world for their outstanding efforts throughout the period.

“Joules' brand, with its distinct heritage and values, underpins the group's exciting growth potential as we continue to develop as a British lifestyle brand with broad international appeal. Whilst trading conditions look set to remain challenging across the sector, with our differentiated brand, unique product offer, loyal and growing customer base, exceptional team and well-invested infrastructure, Joules is well positioned for continued progress and expansion."

At 0930 GMT, the shares were up 0.5% to 326.72p.