Joules first half turnover declines

For the 26 weeks to November 24, 2019, Joules Group plc said revenue decreased by 1.4 percent to 111.6 million pounds (145 million dollars). The company said in a statement that retail revenue in the period was impacted by the timing of the Black Friday trading period, which fell in H2 in FY20 but in H1 in the prior year. On a comparable 27-week period, including Black Friday in both periods, group revenue increased by 1.3 percent. The company’s PBT before exceptional costs decreased by 0.9 million pounds to 8.4 million pounds (10.9 million dollars) and statutory PBT decreased to 1.7 million pounds (2.2 million dollars). While group gross margin remained in line with last year at 54.8 percent statutory basic earnings per share for the period were 1.3 pence compared to 8.3 pence in the previous year.

Commenting on the trading update, Nick Jones, the company’s Chief Executive Officer, said: “Joules delivered a robust first half sales and margin performance in line with expectations, which was pleasing in the context of a challenging consumer environment and widespread discounting by other clothing brands and retailers. Since the period end, we have updated on our disappointing Christmas trading performance, resulting from a stock availability issue impacting our online channel.”

Joules retail revenues on comparable basis increase by 3.1 percent

The company added that retail revenue was in line with the prior year at 79.9 million pounds (103.9 million dollars), while on a comparable 27-week period, including Black Friday in both periods, retail revenue increased by 3.1 percent.

E-commerce channel witnessed growth in the UK and strong performances in the US and Germany. Revenue increased by 10.2 percent to 40.9 million pounds (53 million dollars) and now represents 51.2 percent of total retail sales. Stores revenue on the other hand, decreased by 9.2 percent to 36.2 million pounds (47 million dollars).

Wholesale revenue decreased by 5.1 percent to 30.8 million pounds (40 million dollars) representing continued growth in international revenue, but at a slower rate than in the prior year, offset by decline in sales to the UK wholesale customer base. Other revenue increased by 6.3 percent to 0.9 million pounds (1.1 million dollars).

Total international revenue increased by 6.1 percent and now represents 17 percent of total group revenue, while international e-commerce revenues rose by 40 percent.

Joules board declared interim dividend

The Joules board has declared an interim dividend of 0.77 pence per share to be paid on April 7, 2020 to those shareholders on the register at the close of business on March 6, 2020.

Commenting on the current trading, the company said, sales over the Christmas period were disappointing, reflecting a lack of available stock to meet online demand. The company also expects to face cost headwinds from China-US tariffs on its US wholesale business during the second half of FY20 and also anticipates it to continue into FY21. The company added that despite the well-publicised challenges facing the retail sector in the UK, Joules remains well positioned to continue to deliver against its strategic growth objectives.

Picture:Joules website