Joules sales spike as it ramps up profit expectations

The premium fashion retailer, which floated on AIM just over a year ago, said group revenues jumped 19.6% to £157m during the 52 weeks to May 28.

As a result, Joules said pre-tax profit for the year would come in “comfortably ahead” of previous expectations.

In a pre-close trading statement, Joules said retail sales increased approximately 19.4% year-on-year, driven by “strong” growth in its ecommerce business.

Store-based sales across Joules’ UK and Ireland portfolio also grew, helped by the opening of 11 new stores during the year.

Sales in its wholesale division increased 20.3% compared to the previous year, with its Spring/Summer collection proving popular among both UK and international customers.

Joules said the group’s growth reflected its expansion in the UK and overseas, its growing customer base and the “positive” response to new and core ranges.

The retailer expects to report gross margin gains, driven by a higher proportion of full price sales and distribution efficiencies, when it reveals preliminary results on Wednesday July 26.

Joules boss Colin Porter said: “As a result of the brand’s momentum across channels and product categories, the board anticipates reporting profits for the full year comfortably ahead of its previous expectations.

“Our focus on our brand and our customers as well as our steadfast commitment to product quality remain the bedrock for the group’s growth and success.

“Underpinned by these strengths, the board has confidence that Joules’ momentum will continue into FY18, despite the uncertain macro-economic outlook.”