UK fashion brand Joules has reported a positive set of full-year results on the back of strong retail sales performance at home and overseas, as well as online growth.
For the 52 weeks ending 26 May, underlying profit before tax was up 19.4% year-on-year to GBP15.5m (US$19.3m). Operating profit grew from GBP11.5m in the year-ago period to GBP13.1m, and revenue increased 17.2% to GBP218m.
Go deeper with GlobalData
Joules attributed the strong performance to growth across channels and product categories both in the UK and internationally.
“These results in a challenging retail sector reflect the strength and appeal of the Joules brand, the flexibility of our ‘Total Retail’ model, and the success of our carefully managed product extension strategy,” says CEO Colin Porter.
“Looking ahead, whilst the consumer retail environment is anticipated to remain challenging, particularly in the UK, the board and I believe that Joules remains well-positioned for continued success both in the UK and our target international markets.”
The group adds that macroeconomic uncertainty, due in part to the ongoing possible exit of the UK from the EU, continues to weigh on consumer confidence, resulting in a highly promotional and competitive environment. However, it says its contingency plans for the eventuality of a ‘hard Brexit’ are in place and have progressed over the year.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataGoing forward Joules says it is aiming to grow product sales by increasing availability and accessibility across existing and emerging distribution channels. It also plans to bolster its presence online, as well as looking to grow its presence overseas.
“The Joules brand and products have demonstrated their appeal in our primary international markets, the US and Germany. We have entered, and continue to develop, these markets via a wholesale model supported by e-commerce, leveraging investments made in our central creative and design functions, supply chain and infrastructure with support from local teams, sales agents and product showrooms. We continue to evaluate new markets to expand the brand through the most appropriate channels.”
Commenting on the results Emily Salter, retail analyst at GlobalData, says Joules “remains a consistent outperformer and is seemingly unaffected by the downturn in UK retail due to squeezed incomes and political uncertainty. 2019 marks the brand’s 30 year anniversary, and demand for its signature outdoor styling and British identity shows no sign of waning. 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 and Boden.
“International markets made up 16.1% of group revenue over the period (up from 13.1% in FY2017/18), as Joules’ ‘Britishness’ provides significant opportunities for further international growth, especially through its wholesale channel as it continues to leverage this to drive growth in the US and Germany in particular.
“The retailer’s online platform performed particularly well over the year to make up 49.5% of retail revenue, but its stores still remain important (it currently has 124 standalone stores), and are well-maintained to ensure an attractive shopping environment in line with its brand identity, that helps to drive footfall and sales. It is this model that balances Joules’ exposure to one single channel, reducing the impact of any poor performance, and helps create a seamless shopping experience across all channels – something that consumers increasingly desire.”
