Joules revenue up despite 'challenging' trading conditions

Joules has reported a rise in half-year revenue in a pre-close trading update thanks to a “disciplined” approach to discounting and against a backdrop of “challenging” UK trading conditions.

For the first six months of the year to November, the premium British lifestyle brand reported a 1.3 percent year-on-year increase in revenue. That was boosted by a 3.1 percent jump in retail sales thanks to a “disciplined approach to promotional activity” and strong e-commerce growth.

Half-year wholesale revenue was down 3.8 percent, although international sales enjoyed a healthy 17 percent growth. The retailer credited this to its strong US wholesale business and its “very strong growth” across international e-commerce markets, which demonstrated “the strengthening international appeal of the Joules brand.”

Wholesale revenue down but US sales surge

The retailer also noted that customers have “continued to respond well” to its product offer and its flexible ‘Total Retail’ model, and said that despite a challenging September it experienced “positive trading momentum” over the last two months, with revenue up by over 9 percent across its own e-commerce and store channels.

Commenting on the results in a statement, CEO Nick Jones said: “Joules has delivered further profitable growth during the period despite the continued challenging trading environment. This performance again reflects the appeal of the brand, the flexibility of our ‘Total Retail’ model and the hard work and skill of our team who have not only helped deliver growth in this tougher climate but have also launched innovative new initiatives like ‘Friends of Joules’ that create future growth opportunities.

“Since joining the business in September, I have been struck by the exceptional strength of the Joules brand as well as its clear potential for growth across channels, markets and product categories. We continue to invest in our proposition to meet changing customer expectations in a scalable and profitable way and, with positive momentum across both digital and physical channels, we are well placed as we enter the important Christmas trading period.”

Photo credit: Joules, Facebook

 

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