Joules sales growth accelerates in first half

'Lifestyle' clothing retailer Joules said its revenues increased 16.2% to £81.4m in the first half of its financial year, with the gross margin increased by approximately 100 basis points against the prior year.

Last year the company grew sales 12.8%.

In the 26 weeks to 27 November the company sold a higher proportion of items at full price and drove distribution efficiencies, together with enjoying benefits from a favourable product mix within international wholesale sales.

Helped by a net 10 store openings and good online growth, retail revenue increased 15.8% to £56.7m, while wholesale revenues rose 17.2% to £24.5m on the back of a well received Autumn/Winter range.

Chief executive Colin Porter said the wholesale arm had benefited from the brand continuing to develop in international markets, including expanded product ranges within key US wholesale accounts as well as the launch of Kidswear in a new partnership with a leading US department store.

"We look forward with confidence to the second half of the financial year and beyond, despite the uncertain macro-economic outlook.

"We have seen strong growth in our wholesale order book for Spring/Summer 17 and we are well positioned for the Christmas trading period."

Analysts at FinnCap said the company historically had limited seasonality in the mix, with first-half sales typically 53% of the full year, Wednesday's update gave greater visibility over full year numbers.

"We retain our forecasts and 210p price target, although forecast risk is to the upside."

Having come close to its all-time high on Tuesday, shares in Joules were down 3.5% to 195.44p by lunchtime on Wednesday however.