TIDMJOUL
RNS Number : 7640C
Joules Group plc
23 June 2021
Joules Group plc
('Joules', the 'Company' or the 'Group')
Pre-close Trading Update
Continued strong digital momentum combined with store sales
ahead of expectations since re-opening
Joules, the British lifestyle group, provides an update on
trading for the financial year ended 30 May 2021 (the
'Period').
The Group is pleased to report that revenue for the Period
increased by 4% to approximately GBP199m (FY20: 190.8m) despite the
significant challenges impacting the retail sector during the
financial year. This performance primarily reflects the strength of
the Group's digital proposition and increasing active customer
numbers, as well as the positive contribution from the acquisition
of Garden Trading Company Ltd ("Garden Trading") since February
2021. Profit before tax and exceptional items for the Period is
anticipated to be in the range of GBP5.5m - GBP6.5m, slightly ahead
of current market expectations(1) .
Retail revenue, which includes e-commerce sales as well as the
Group's stores, increased 9% year on year. This was primarily as a
result of strong sales growth through the Group's own digital
channels with demand on Joules' own websites, which includes the
Friends of Joules online marketplace, growing approximately 48%
year on year.
This very strong digital performance reflected increased
customer traffic to the Joules website as well as improved customer
conversion trends.
The Group's stores have performed ahead of management's
expectations since their re-opening following the third national
lockdown, with sales for the eight weeks since reopening ahead of
the comparable period two years ago. The Group has also opened
three new stores at Center Parcs' Sherwood, Whinfell and Elveden
locations, taking the total number of Joules' Center Parcs stores
to five. This pleasing store performance reflects a combination of
pent-up consumer demand as well as the attractive, predominantly
local high street and lifestyle locations of the Group's store
estate. Reflecting the enforced closure of Joules stores for
approximately half of the Period, store sales reduced by
approximately 41% year on year.
Garden Trading has traded well and ahead of the Board's
expectations since the acquisition in February 2021, with revenues
approximately 78% higher than the comparable prior year period.
This encouraging performance highlights the strength of Garden
Trading's home, garden and outdoor product offering and its
fast-growing customer base.
The Wholesale channel was adversely impacted by the enforced
closures of stores and reduced footfall during the year both across
the UK and the Group's US and German partners. As a result,
Wholesale sales reduced by approximately 17% year on year.
The Group's financial position is robust, with net cash of
GBP4.7 million at 30 May 2021 and approximately GBP39 million of
liquidity headroom against current facilities. This includes a
GBP25m revolving credit facility which the Company last month
announced it had extended to September 2024 and converted to an
ESG-linked arrangement. The agreement further strengthens the
Group's commitment to positively impact its customers, colleagues
and the environment by linking interest rate margin to Joules'
performance against three Sustainability Performance Targets, each
of which align to its Responsibly Joules ESG framework.
Following the announcement published by the Group on 7 April
2021 regarding the appointment of Caroline York as Joules' new CFO,
the Board confirms that Caroline will join the business on 26 July
2021.
Nick Jones, Chief Executive Officer of Joules, commented:
"The impact of the coronavirus pandemic on the lives of
consumers, the level of disruption and pace of change in the retail
sector over the past 12 months has been truly unprecedented. I am
delighted that, against this backdrop, Joules has been able to
deliver a very solid financial performance and strong strategic
progress. This outcome primarily reflects, firstly, the strength
and relevance of the Joules brand to an increasing number of
customers and, secondly, the increasing importance of our digital
proposition both to customers and within our business model, with
approximately 77% of our retail sales now generated online.
As we move into the new financial year, Joules is now a stronger
and more diversified business than ever before. The continued
success and growth of our Friends of Joules digital marketplace and
our strengthened position in the home, garden & outdoor sector
following the acquisition of Garden Trading means that we now offer
significantly more products across more categories and provide our
customers with more choice and reasons to shop with us. As a result
of the strength of the Joules brand and the increasing
diversification of the Group's digital-led business model, we
believe that the Group is very well positioned to continue to
deliver its ambitious growth plans."
(1) FY21 analyst expectations: GBP5.2 - GBP5.3m
Enquiries:
Joules Group plc Tel: +44 (0) 1858 435 255
Nick Jones, CEO
Jon Dargie, Acting CFO
Hudson Sandler (Financial PR) Tel: +44 (0) 20 7796 4133
Alex Brennan
Lucy Wollam
Peel Hunt LLP, Nominated Advisor and Tel: +44 (0) 20 7418 8900
Joint Broker
George Sellar
Andrew Clark
Will Bell
Liberum Capital Limited, Joint Broker Tel: +44 (0) 20 3100 2000
John Fishley
Edward Thomas
Joules - a premium lifestyle group with an authentic British
heritage
Joules is a premium lifestyle brand and group with an authentic
heritage and values of family, fun and joy in the countryside.
Joules creates and curates exceptional products that brighten
the lives of its customers, delivered through leading digital
platforms a nd supported by enticing experiences and stores that
are located in desirable locations relevant to the Joules
customer's lifestyle.
The Joules story began in 1989, when Tom Joule started selling
clothing on a stand at a country show in Leicestershire. Today, the
business designs and sells Joules branded clothing, footwear and
accessories for women, men and children as well as collections of
homeware, toiletries, lifestyle and pet product ranges that are
carefully designed and developed through selected licensing
partnerships. Each collection comprises Joules' distinctive use of
humour, colour and unique prints, each of which is hand-drawn by
the brand's talented in-house print design team at its headquarters
in Market Harborough, Leicestershire.
Joules' distinctive design-led products are complemented by an
increasingly broad customer offer provided through its digital
marketplace Friends of Joules that enables third party brands to
offer curated, complementary products to the Joules customer base,
enhancing Joules' digital platform with thousands of products from
hundreds of creative businesses to give customers everything they
could ever need for a contemporary country lifestyle.
The Joules brand caters to its 1.7 million active customers
through its own digital platform, its retail stores in the UK and
at country shows and events. Joules extends its brand reach through
well-established third-party relationships - concessions, online
marketplaces and traditional wholesale - in the UK and
internationally.
Internationally, the brand has made good progress in its target
markets of the US and Germany, where the distinctive Joules brand
and products range resonate well with local customers.
International markets are served by wholesale partnerships and
dedicated Joules websites.
In 2021, Joules acquired leading digital home and garden
retailer The Garden Trading Company, strengthening its position in
the important and fast-growing home, garden & outdoor category.
Similarly inspired by the British countryside, Garden Trading
designs and sells distinctive products through its own e-commerce
platform and wholesale partnerships with more than 1,000 stockists
across the UK.
www.joules.com
www.gardentrading.co.uk
www.joulesgroup.com
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTFTMRTMTMTBTB
(END) Dow Jones Newswires
June 23, 2021 02:00 ET (06:00 GMT)
Joules (LSE:JOUL)
Historical Stock Chart
From Apr 2024 to May 2024
Joules (LSE:JOUL)
Historical Stock Chart
From May 2023 to May 2024