In a trading update for the 52 weeks to 27 May 2018, the AIM-listed firm said group revenues increased by 18.4% to £185.9mln as its strong momentum throughout the first half of the year and Christmas period continued in the second half.
The company said its retail revenue increased by 15.9% on the prior year, driven by a good e-commerce sales performance and opening of new stores.
Wholesale revenue increased by approximately 24% on the prior year, driven by strong growth in the spring/summer order book from both UK and international wholesale customers.
The company anticipates gross margin to be marginally ahead of the prior year.
Colin Porter, chief executive officer, said: “Our multichannel approach and ‘buy now, wear now’ product proposition has enabled the group to deliver a performance ahead of our initial expectations, despite widely reported challenges in the sector.”
He added:“We have made excellent progress against our strategy of further developing the brand in the UK and target international markets and we remain confident of continued growth and expansion of the Joules brand.”
In morning trading, Joule's shares jumped 3.3% to 340.0p
City broker Liberum Capital reiterated Joules ‘buy’ rating and increased its price target to 420p from 410p.
In a note to clients, analysts said: “The group’s well-balanced distribution model has driven strong growth in Retail, against a tough market backdrop, alongside outperformance in Wholesale as the nascent International opportunity is harnessed.”
“We continue to see Joules as a core holding within UK clothing retail,” the analysts concluded.
-- Adds shares price, analyst comment --