Joules continues double digit growth despite market woes

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Joules has continued to outpace its struggling high street rivals as it posted soaring sales and profit growth, boosting share prices three per cent.

In the year ending May 27, the fashion retailer saw year-on-year revenues jump 18.4 per cent to £185 million, with profits coming in “marginally ahead” of expectations at £12.6 million.

This was thanks to a 15.9 per cent rise in retail sales and a 24 per cent boost in wholesale sales during the year, alongside improved margins thanks to fewer promotions and international sales.

“This performance is testament to the strength and appeal of the Joules brand and our distinctive products which continue to resonate with our growing and highly engaged customer base,” chief executive Colin Porter said.

“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.”

Analysts at Liberum cited the retailer as one of the few fashion retailers currently able to reliably produce double digit sales growth while improving margins.

“Today’s update shows that not all areas of the consumer landscape are struggling,” the firm said.

“There are some material share shifts taking place and we see Joules as a beneficiary.

“Joules has a strong brand, heritage, low fashion risk and wide appeal. It is gaining share in the fast-growing premium lifestyle sector where growth levers exist including stores, online, wholesale and international.”

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