// Joules’ half-year retail sales up 3.1% due to “disciplined approach to promotional activity” & strong ecommerce growth
// However, wholesale revenues were down 3.8% in the six months to November
// Overall, half-year revenues grew 1.3% against backdrop of challenging retail conditions
Joules has hailed an increase in half-year sales, driven by “disciplined” promotional activity and strong online growth against a backdrop of challenging retail conditions.
In a pre-close trading update covering the six months to November, the fashion and lifestyle retailer said overall half-year revenue increased 1.3 per cent year-on-year.
This was boosted by a 3.1 per cent uptick in retail revenue on the back of a “disciplined approach to promotional activity” as well as “strong” growth in its ecommerce arm.
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Joules acknowledged it had a challenging September, but in the final two months of the second quarter retail sales growth made a comeback with an increase of nine per cent.
However, half-year wholesale revenues were down 3.8 per cent – which Joules blamed on the conversion of some of its larger wholesale deals into retail concessions last year as well as the ongoing “challenging UK trading environment”.
Meanwhile, international sales continued to grow and represented approximately 17 per cent of Joules’ overall revenue in the first half, up from 15.8 per cent in the first half of last year.
The retailer credited its international growth to a growing US wholesale business and “very strong growth” across international ecommerce markets.
Joules also said its customers “continued to respond well” to what it called its “total retail” model, which aims to “seamlessly integrate” stores and online.
The lifestyle retailer said that due to the success of its first half, it would open four new stores by Christmas as as well grow online sales with the launch of its Friends of Joules online marketplace – offering third-party sellers a platform to sell their products.
“Joules has delivered further profitable growth during the period despite the continued challenging trading environment,” Joules chief executive Nick Jones said.
“This performance again reflects the appeal of the brand, the flexibility of our ‘total retail’ model and the hard work and skill of our team who have not only helped deliver growth in this tougher climate but have also launched innovative new initiatives like ‘Friends of Joules’ that create future growth opportunities.”
Joules will reveal full details of its half-year performance in its interim results on January 21.