Joules makes contingency plans ahead of Brexit as it bucks retail trend

Joules

Joules, the premium British lifestyle brand, appears to have bucked the retail trend in its first half of the year, but is taking no chances with Brexit as it lays contingency plans ahead of March 2019.

For the 26 weeks to 25 November, group revenues increased by 17.6% to £113.1 million  – up from £96.2m in the same period of the previous year.

Given this sales performance, the Board anticipates announcing a level of Underlying Profit Before Tax (PBT) that is slightly ahead of initial expectations for the Period, when it announces its Interim Results on Wednesday 23rd January 2019

The company also say contingency plans have been put in place to mitigate the expected disruption that could arise in the event of a ‘hard Brexit’.  These plans include establishing an EU based 3rd party distribution facility; scheduling earlier inbound product deliveries for their Spring/Summer 2019 ranges; preparation for expected increased administrative activities; and hedging US Dollar requirements more than 12 months forward.

Commenting on the performance in the first half, Colin Porter, Chief Executive Officer, comments: “I am delighted to update on what has been another period of strong performance for Joules despite challenging trading conditions.  This performance, which is ahead of our initial expectations for the Period, is testament to the strength of the Joules brand, the engagement of our loyal customers with our product collections, and our fantastic teams.

“In the UK, our ‘total retail’ cross-channel model, underpinned by investment in infrastructure, has proven to be well suited to today’s rapidly changing consumer shopping behaviours.  In addition, our international wholesale business continues to make excellent progress by both increasing sales to existing accounts and developing new accounts.

 “We have an outstanding brand, good momentum and a growing customer base and we look forward to the second half of the financial year with confidence.”