Joules Christmas trading update, Edison view: “Hot on the heels of an upbeat half-year pre-close trading update in December, the lifestyle brand Joules has not disappointed over the Christmas period.”
Kate Heseltine, analyst at Edison Investment Research said:
“Hot on the heels of an upbeat half-year pre-close trading update in December, the lifestyle brand Joules has not disappointed over the Christmas period. For the seven weeks to 6th Jan total sales grew by 11.7%, a slower rate than the 17.6% reported for the first half, but still impressive in the current climate.
Despite gaining a little ground since the December update, wider pressure on Joules’ share price over the past six months has significantly narrowed the company’s valuation premium versus the peer group. What sets this business apart is its robust strategy which embraces e-commerce, the compelling international opportunity and the backing of a strong balance sheet. Over the Christmas period e-commerce represented approximately 50% of total retail sales, consistent with the first half of the current financial year.
The company has reiterated that it remains on track to deliver full year consensus earnings forecasts. It reports interim results on 23rd January. “
