UK fashion retailer Joules is expecting earnings to come in at the top end of the range of analyst forecasts for fiscal 2019 thanks to the group’s “robust” gross margin performance, sales growth, and disciplined cost management.
For the 52-week period ended 26 May, Joules is forecasting underlying pre-tax profit to be at the top end of the range of external analyst expectations of GBP14.8m-GBP15.3m (US$18.8m-$19.4m).
The group will announce its preliminary results for the year on 23 July. In a trading update today (6 June), Joules said group revenues were up 17.2% year-on-year to GBP218m from GBP185.9m as strong momentum in the first half and the Christmas trading period continued into the second.
Retail revenue increased by around 22.7% on the prior year, driven by e-commerce which performed “particularly well” in the period, representing half of group retail revenue.
“As Joules celebrates its 30th anniversary, this strong performance, particularly in our international markets and across our e-commerce and licensing channels, reflects the strength of our distinctive brand as well as the appeal of our products across an ever-increasing range of lifestyle categories,” said outgoing CEO Colin Porter.
“The group’s flexible and integrated ‘total retail’ model is well suited to meet rapidly evolving consumer shopping behaviours. Supported by this strong momentum and our outstanding brand, growing customer base and skilled colleagues across the world, we continue to look forward with confidence despite well-documented sector headwinds.”
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By GlobalDataLast month, Joules named former Asda and M&S executive Nick Jones as its next CEO, replacing Porter who is stepping down after eight years at the business.
Jones will take up the role of CEO at Joules before the end of 2019 and, following a brief handover period, Porter will leave.
Emily Salter, retail analyst at GlobalData, notes Joules remains a consistent outperformer and is seemingly unaffected by the downturn in UK retail due to squeezed incomes and political uncertainty.
“Brand longevity can be a concern for lifestyle players, but these results are testament to Joules’ distinctive design handwriting that gives it an edge over its competitors, such as Fat Face which reported muted sales over the Christmas trading period, and Boden.”
