Joules Group PLC (LON:JOUL) said it achieved strong sales over the key Christmas trading period, putting it on track to meet its pre-tax profit expectations for 2019.
The fashion retailer reported an 11.7% increase in retail sales in the seven weeks to January 6, compared to the same period a year earlier, with growth across all product categories.
E-commerce sales, through the Joules website and the company’s concession partners’ websites, led growth with online representing almost half of total retail sales.
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"I am pleased to update on a continued strong retail performance for Joules through the important festive trading period, which represents an improvement from the retail sales growth in the first half of the year,” said chief executive Colin Porter.
“This good growth was achieved despite the ongoing backdrop of challenging sector trading conditions.”
Shares gained 5.5% to 258p in morning trading.
Liberum reiterated a 'buy' rating on the stock and a target price of 420p, saying the group has extended its track record of consistent outperformance versus peers in a tough market.
"Our forecasts are unchanged but even more secure following this performance over peak," the broker said.
"We expect continued double-digit top-line momentum over the long-term to be complemented by the capture of operational leverage from the group's well-invested infrastructure."