Joules profits to be 'comfortably ahead' of target

Clothing retailer Joules said profits in its first full year as a listed company would be "comfortably ahead" of its previous expectations" after sales growth of almost 20% and with stronger margins.

The AIM-listed lifestyle brand, which began selling colourful Wellington boots at country fairs, reported revenues increased 19.6% year on year to £157m for the 52-week period to 28 May.

Joules, which floated on the junior market on 26 May last year, opened 11 net new stores in the year and said good growth continued in the second half thanks to the brand’s expansion in the UK and international markets and "positive customer responses to both new and core ranges across product categories".

Retail revenue was up 19.4% helped by strong growth from its website and the new stores, while wholesale revenues grew 20.3% driven by strong growth in the Spring/Summer order-book from UK and international customers.

With sales up and a strengthening in the group gross margin as a result of a higher proportion of full price sales plus further distribution efficiencies and a favourable product mix within international wholesale, Joules management said it "anticipates reporting FY17 group profit before tax comfortably ahead of its previous expectations" in late July.

Chief executive Colin Porter said: “The appeal and strength of the Joules brand continues to resonate with our loyal and growing customer base. The brand’s growth continued in the second half of the financial year, building on the strong performance in H1.

On the outlook he added: "Underpinned by these strengths, the Board has confidence that Joules’ momentum will continue into FY18, despite the uncertain macro-economic outlook. This confidence is supported by the growth in our customer base and our exciting new store opening plans, as well as a robust Autumn/Winter wholesale order-book both in the UK and internationally.”