Good morning!

Today we have updates from:

And in the world of big-caps, IG Group (LON:IGG) has issued an update. And the executives at Boohoo (LON:BOO) have sold shares (thanks for alerting me to this with your comments).

Timings: finished at 13.40.



Joules (LON:JOUL)

  • Share price: 225p (+0.5%)
  • No. of shares: 89.4 million
  • Market cap: £201 million

Pre-close trading update

Joules, the premium British lifestyle brand, today provides a trading update for the first half of the financial year to31 May 2020 ('H1').

These H1 sales figures are adjusted to include Black Friday, since it was included in last year's H1.

I quite like the overall message here:

5de8d26ab5ce2JOUL_20191205.PNG

As you can see, retail and "other" (licensing) both achieved growth.

The only category to fall was wholesale. Wholesale partners have been converting to the retail concession model, so there is a shift in revenue from one category to the other.

But that only partially explains the 3.8% decline in wholesale - Joules cites the "continued challenging UK trading environment".

As for retail, it will have been boosted by the conversion from Wholesale but other factors given are "strong e-commerce growth", "enhancements to the customer proposition" and "growth in our active customer base". There has also been some store growth.

Store growth - after a tough September, Joules reports that October and November were much better (retail revenue up 9%). As a consequence, Joules plans to open four new stores before Christmas. For context, it had 125 stores at the most recent year-end.

I'm not entirely sure about this - surely the justification for opening new stores is a lot stronger than just a couple of months of good trading?

Either way, it's encouraging that management see continued store growth opportunities, despite the difficult general environment.

But note that the 3.1% growth rate in retail revenue includes e-commerce revenue and is not adjusted for floor space or the number of established stores, i.e. it is…

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