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Joules posts strong annual revenue growth of 18.4 percent

By Prachi Singh

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Business

British lifestyle brand Joules, in its trading update covering the 52-week period to May 27, 2018 said that group revenues increased by 18.4 percent or 18.8 percent on constant currency basis, year on year to 185.9 million pounds (249.6 million dollars), as the group’s strong momentum throughout the first half of the year and Christmas period continued in the second half.

Commenting on the company’s strong annual trading, Colin Porter, Joules’ Chief Executive Officer, said in a media release: “Our multichannel approach and ‘buy now, wear now’ product proposition has enabled the group to deliver a performance ahead of our initial expectations, despite the widely reported challenges in the sector. We have made excellent progress against our strategy of further developing the brand in the UK and target international markets.”

Financial highlights of Joules full year results

Retail revenue for the period increased by approximately 15.9 percent on the prior year, also 15.9 percent on a constant currency basis driven by positive ecommerce sales performance, as well as continued growth across the Group’s UK and ROI store estate, which benefited from 15 net new stores during the year.

Wholesale revenue increased by approximately 24 percent or 25.7 percent on constant currency on the prior year driven by strong growth in the spring/summer order-book from both UK and international wholesale customers.

The board anticipates that the Group gross margin will be marginally ahead of the prior year, as a result of maintaining promotional discipline within retail channels and an improved gross margin in international wholesale, where the company has completed the migration of the US third-party distributor activity to an in-house model and seen a favourable product mix with an increased proportion of clothing sales.

As a result of the group’s revenue growth, improved gross margin and disciplined cost management, the board anticipates reporting that the underlying profit before tax for the period will be marginally ahead of analyst expectations.

Picture:Joules website

Joules