(qlmbusinessnews.com via news.sky.com– Thur, 5th Dec 2019) London, Uk – –
The retailer says it is opening four new stores ahead of Christmas as it credits online growth for rising revenues.
Joules, the fashion retail brand, has reported a surge in revenue in the run-up to the festive season, crediting a “disciplined approach” to discounting.
In a trading update the company, which has 124 stores in the UK and Ireland and 33 concessions, said it had delivered a robust performance with total revenue growth of 1.3% over the 26 weeks to 24 November.
Its figures – adjusted to take account of the later Black Friday this year – showed a 3.1% leap in retail sales.
This was driven, the company said, by e-commerce growth rather than sales at physical stores.
Sales in its wholesale operation were 3.8% lower, though international sales surged by 17%.
“Following a challenging September, as experienced across the sector, we have seen positive trading momentum across Joules' own e-commerce and store channels over the last two months, with revenue up by over 9%.
“On the back of this positive performance the group is opening four new stores before Christmas, in desirable locations and on attractive terms,” the statement said.
Joules, which describes itself as a premium lifestyle brand, designs and sells clothing, footwear and accessories for women, men and children.
It issued the trading update ahead of what is expected to be another Christmas season dominated by discounting in the wider retail sector following a tough year for the high street in particular.
Store chains have come under pressure from weak consumer confidence at a time of surging costs from business rates, rent and wage rises though there have been some signs of a recovery ahead of Christmas.
Fast fashion firm Quiz saw its shares come under renewed fire on Wednesday when it announced steep falls in sales and that it had slumped into the red.
Dunelm, the homeware and furnishings retailer, enjoyed a 16% bounce on Thursday after it raised its profit forecasts.
Joules investors gave a more cautious welcome to its update – with the stock, flat in the year to date, rising by more than 1%.
Chief executive Nick Jones, who joined the company from Asda in September after the retirement of Colin Porter, said: “Joules has delivered further profitable growth during the period despite the continued challenging trading environment.”
He added: “We continue to invest in our proposition to meet changing customer expectations in a scalable and profitable way and, with positive momentum across both digital and physical channels, we are well placed as we enter the important Christmas trading period.”
By James Sillars
