Joules Group PLC (LON:JOUL) saw its shares gain over 4% in morning trading as the clothing, accessories and homeware retailer said it expects its maiden full-year results to be “comfortably ahead of its previous expectations.”
The AIM-listed firm, which floated last May at 160p a share, was up 12p at 298p following the bullish forecast in a pre-close season trading update, in which it reported strong revenue growth and improved gross margin.
Joules said its group revenues increased by 19.6% year-on-year to £157.0mln- 18.6% growth on a constant currency basis - as its strong performance in the first-half and the Christmas trading period continued during the second half of the year.
READ: Joules slides despite strong first half
The group said: “This strong growth is a reflection of the brand's expansion in the UK and international markets, Joules' growing customer base, and the positive customer responses to both new and core ranges across product categories throughout the Period.”
Joules added that its retail revenue increased by approximately 19.4% on the prior year, driven by strong growth in the e-commerce channel as well as continued growth across the group’s store estate in the UK and Ireland where it opened 11 net new stores in the period.
Joules anticipates achieving a stronger gross margin
The retailer also said it anticipates achieving a stronger gross margin in the year, reflecting a higher proportion of full-price sales, distribution efficiencies and a favourable product mix.
Joules’ chief executive, Colin Porter said: “The brand's growth continued in the second half of the financial year, building on the strong performance in H1.
“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.”
The group will release its full-year results on July 26.