British lifestyle brand Joules (JOUL:AIM) continues to perform well, delivering a 18.2% rise in overall sales in the half year to 26 November. The increase driven by strong expansion both in store and online.
We are not surprised by the positive trading update as Joules is one of our Great Ideas.
Back in June, we were encouraged by the welly seller’s announcement that full year pre-tax profit would beat expectations, triggering a round of earnings upgrades.
Over the last six months, retail sales have jumped 16.2% to £65.9m and this pace should maintained as Joules plans to increase its retail store estate still further in the future.
Chief executive officer Colin Porter says trading conditions remain challenging, which could explain why the share price has barely moved at 262.1p.
COULD IT DO BETTER THAN EXPECTED
According to Liberum analyst Wayne Brown, Joules needs sales growth of just 11% in its second half to hit expectations, meaning it could benefit from further upgrades if its current performance is maintained.
He is confident the company can benefit from several catalysts next year including its trials with online retailer Zalando and Amazon, which can extend access for customers to the brand.