11th May 2021 10:48
(Alliance News) - Joules Group PLC on Tuesday said it expects its annual performance to top consensus and took heart from the UK confirming its lockdown easing roadmap as the retail sector eyes a recovery from a tough year.
Shares in the Leicestershire-based firm were 7.6% higher at 278.55 pence each in London on Tuesday morning.
Since reporting its first half results back in January, the retailer said it has "continued to deliver a positive performance" from its unit that have been able to trade through the latest lockdown.
On trading in the 11 months to May 2, Joules hailed its digital platform, as well as newly-acquired Garden Trading Co. It also noted a decent showing from its stores since they reopened in mid-April.
"Notwithstanding the continued uncertainty impacting the retail sector, the board is encouraged by this momentum across retail channels, as well as by the confirmation of the further easing of lockdown restrictions in England by the UK government, and now anticipates that the group's revenue and profit before tax for FY21 will be ahead of current analyst consensus expectations," Joules added.
Company-compiled consensus points to annual revenue of GBP187 million and a pretax profit, before exceptional items, of GBP4.1 million.
In the year ended May 2020, the company posted a pretax loss before exceptional items of GBP3.9 million, on revenue of GBP190.8 million, so consensus forecasts an improved profit performance, but a 2.0% revenue fall. Last year, Joules posted GBP21.5 million in exceptional costs, this included store impairment costs.
"E-commerce has continued to deliver strong growth, with demand on Joules' own websites growing approximately 50% year-to-date against the comparable prior year period, up from the 47% growth reported for the first half of the financial year," the company said.
"Stores have performed ahead of management's expectations since re-opening following the third national lockdown, with sales for the four weeks since reopening ahead of the comparable period two years ago. This pleasing performance reflects a combination of pent-up consumer demand as well as the attractive, predominantly lifestyle locations of the group's store estate."
By Eric Cunha; [email protected]
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