Joules : Interim Results for the 26 weeks ended 25 November 2018

Interim Results for the 26 weeks ended 25 November 2018

Strength of the Joules brand and flexible 'total retail' model deliver profits ahead of initial expectations

Highlights:

26 weeks ended		25 November 2018	26 November 2017	Change
Group Revenue		£113.1m	£96.2m	+17.6%
Underlying Profit Before Tax1		£10.7m	£9.3m	+14.7%
Underlying pro forma basic EPS2		9.7p	8.5p	+14.7%
Interim Dividend		0.75p	0.70p

· Group revenue increased by 17.6% to £113.1 million (up 17.5% in constant currency)

- Approximate revenue growth of +14%³ excluding the impact of the successful transition of certain wholesale accounts to a retail concession model in the Period

· Underlying Profit Before Tax increased by 14.7% to £10.7 million

· Active⁴ customers increased by 20% to 1.4 million

· International revenue increased by 64.2% and now represents 15.8% of Group revenue

· Net cash of £4.3 million, an improvement of £1.3 million on the prior year

· Continued retail sales momentum through the Christmas trading period, with retail sales +11.7% in the seven weeks to 6 January 2019

· The Board reiterates its confidence in achieving full year 2019 Underlying PBT in line with its expectations

COLIN PORTER, CHIEF EXECUTIVE OFFICER, COMMENTED:

'Joules has delivered another strong performance in the first half of year. As previously reported, this outcome is ahead of our initial expectations for the Period and has been achieved despite challenging trading conditions.

The business's success during this first half of the year is testament to the strength of our distinctive brand and the efforts of our fantastic team. We continue to benefit from a well-invested and flexible 'total retail' model in the UK, which enables us to respond and adapt to shifting customer preferences. Internationally, the brand continues to grow very well in both the US and Germany.

During 2019 the brand will celebrate its 30^th Birthday, marking three decades of Joules delivering fun, quality clothing for families and friends to make lasting memories together. We have some very exciting celebrations planned throughout the year built around some of the special moments we have shared with our customers since the Joules story began - when Tom started selling practical clothing with a distinctive twist on a stand at a country show in Leicestershire - back in 1989.

We have continued to trade well since the Period end with a good performance through the festive period and positive customer reactions to our new collections. 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.'

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¹ Underlying excludes the cost of share based payments. A reconciliation to reported (IFRS) results is included in the Financial Review below.
² Underlying EPS: Underlying Profit Before Tax with tax deducted at a consistent rate divided by the number of shares in issue as at 25 November 2018.
³ Comparative growth is based on adjusting the prior period as if the retail concession model was being operated in that period. The prior period restatement is unaudited and approximate. Comparative growth by segment is included in the Financial Review below.
⁴ A customer registered on our database who has transacted in the last 12 months.

ENQUIRIES:

Joules Group plc	Tel: [phone]
Colin Porter, CEO Marc Dench, CFO
Hudson Sandler (Financial PR)	Tel: [phone]
Alex Brennan Lucy Wollam
Peel Hunt LLP, Nominated Advisor	Tel: [phone]
Dan Webster George Sellar Guy Pengelley
Liberum Capital Limited	Tel: [phone]
John Fishley Joshua Hughes

JOULES - 'A PREMIUM LIFESTYLE BRAND WITH AN AUTHENTIC BRITISH HERITAGE'

Established in Britain by Tom Joule three decades ago, Joules is a premium lifestyle brand with an authentic heritage.

The Joules story began in 1989, when Tom Joule started selling clothing on a stand at a country show in Leicestershire. Today, it is a true multi-channel lifestyle brand; its products are available through its own retail stores, online, at rural shows and events and wholesale channels both in the UK and internationally.

Joules carefully designs and sells clothing, footwear and accessories for women, men and children, as well as ever-growing homeware, eyewear and licensed product collections.

The brand's values of quality, Britishness, family, and humour, coupled with its unique use of colour and print set Joules apart. This approach, along with an unwavering attention to detail and drive to surprise and delight its customers with unexpected details, has been central to the brand's success and remains at the heart of everything Joules creates.

During 2019 the brand will celebrate its 30^th birthday, marking three decades of Joules delivering fun, quality clothing for families and friends to make lasting memories together. The brand has some very exciting celebrations planned throughout the year, built around some of the special moments shared with its customers since the Joules story began back in 1989.

www.joules.com | www.joulesgroup.com

JOULES FAST FACTS

· Joules is an international brand, available in the UK, USA, Germany, France and other European markets

· Joules operates 123* stores in the UK and ROI across a range of location types, has a significant online business and a well-established wholesale business with over 2,000 stockists worldwide, including John Lewis and Nordstrom Joules' talented in-house print design team lovingly hand-draw all the prints and unexpected unique details you see within its collections each season

· Joules is proud of its British heritage and still has strong roots in Market Harborough, the site of its first shop and head office - since day one

· Colin Porter joined as COO in 2010 and became CEO in September 2015, with Tom Joule focusing on the creative side of the business in his capacity as Chief Brand Officer

· Joules received Mark of Excellence for The Best Fashion Retailer at the Retail Week Awards 2018

· Joules recently won Fashion Retail Business of the Year (between £101m and £500m turnover) at the Drapers Awards 2018, for the second year in a row. The Group also won the Drapers Mainstream Brand of the Year in both 2017 and 2016, and Best British Fashion Retailer of the Year in 2015

*As at 25 November 2018, excluding concessions