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Joules chairman brushes off Brexit concerns as profits rise

Joules chairman Neil McCausland brushed off any immediate impact from Brexit uncertainty as he confirmed sales and profits rose in the firm’s first full-year results since it launched on the London Stock Exchange’s Aim market in May.

joules edinburgh1

joules edinburgh1

Joules’ sales grew by 14.2% to £131.3m for the year ending 29 May 2016 compared with the previous year, while underlying profit before tax jumped 41.5% to £7.5m.

Retail sales grew by 12.8% and wholesale sales were up by 18.3% on the previous year. Ecommerce sales increased 17.3% and store sales were up by 13.1% in the period – during which Joules opened 10 new stores, converted one franchise and closed five stores, ending the period with 97 stores, up from 91.

International revenue now represents 10.1% of group revenue.

“It is too early to assess the specific macroeconomic effects of the UK’s decision to leave the European Union, though it has created an environment of increased uncertainty,” said McCausland.

“I believe that Joules is well placed to meet these uncertainties through a combination of the strength of its brand and products; its target customer demographic; and the historic investment that has been made in infrastructure.”

He said the impact on the product cost base resulting from weaker sterling is mitigated through hedging in place throughout the 2017 financial year and into the first quarter of the subsequent year.

Chief executive Colin Porter said trading to date has been in line with expectations and early feedback on spring 17 ranges from trade customers has been positive.

“FY16 was a transformational year in the development and expansion of the Joules brand, which included our successful admission to Aim in May.

“We have delivered strong growth across our retail and wholesale channels, significantly increasing profitability by effectively leveraging our operating cost base,” he added.

“Our active customer base and international sales have also grown impressively, all of which is great testament to the growing strength and appeal of Joules as a premium lifestyle brand.”

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