On Dec. 5, Joules released a trading update where it publicised that eCommerce is driving nearly half (50 per cent) of its entire retail sales. The data indicated a positive sales outcome in the first half of the financial year 2018.
From the 26-week phase to 25 Nov. 2018, Joules’s revenue shot up 17.6 per cent to £113.1 million mostly fueled by stable growth in its global operations which it said now stands for roughly 16 per cent of total revenue.
On Retail sales, Joules recorded a 21.2 per cent uptick to settle at £79.9 million, while wholesale trade went up 8 per cent to stand at £32.5 million, supported by sales performance from target overseas markets of the United States and Germany. But Joules disclosed that retail and wholesale figures were impacted by the shift of several UK wholesale accounts to a retail model, which the firm believes “offers greater trading flexibility for the future”.
Moving forward, the board plans to make known the underlying profits before tax that went slightly beyond earlier predictions for the year, though it anticipates more challenges in the UK’s trading conditions in the coming term. This beyond-the-expectation result is a rare performance for a UK retailer who is operating in a challenging climate and brings Joules to light as an exceptional industry performer.
Meanwhile, Joules is putting in place emergency plans ahead of the looming UK’s exit from the European Union on 29 March 2019. The company plans “to alleviate the projected disruption that could crop up in the event of Brexit hits rock-bottom”. Part of the contingency plan is setting up an EU-based third-party supply centre, and scheduling early deliveries of inbound product for its spring-summer 2019 period.
The big box retailer also disclosed plans to get ready for the increasing administrative duties, and it is pre-verifying US dollar requirements over 12 months in advance.
Colin Porter, the CEO of Joules, confessed that the performance was way above the firm’s initial expectations for that span.
“In the United Kingdom, our ‘total retail’ cross-channel model, backed by investing in new infrastructure, has helped meet the rapidly changing shopping behaviours of today’s customers,” he explained.
“Plus, our international wholesale platform continues to progress remarkably well— we are experiencing more sales on existing accounts and recording high numbers of new accounts.”
Joules will release its provisional results for the 26-week phase to 25 Nov. 2018 on 23 Jan. 2019. Hopefully, the retailer will record even better performance come next year.
Author Bio: Payment industry expert Taylor Cole is a passionate merchant account expert who understands the complicated world of accepting credit and debit cards at your business. His knowledge of the industryhas helped thousands of business owners understand lloyds merchant services.