Joules Share Discussion Threads

[daymer58] 24/7/2019 11:39

Still think it is no 1 M&A if the key share holders are Looking to sell

[martinc] 23/7/2019 10:41

Because the shares are fairly expensive already so the results would have to be spectacular to push the shares up much. Merely good doesn't cut any mustard on this PE.

[rathean] 23/7/2019 10:03

Another solid set of results so why is the share price held in status?

[elpirata] 22/7/2019 18:21

recent press...

US prospects for Joules

By Andrew Hore - 21/07/2019
Fashion brand Joules (LON: JOUL) has already announced that pre-tax profit for the year to end May 2019 will be ahead of previous expectations at around £15.3m. Tuesday’s announcement will provide some indications about the UK retail environment for the company and its international growth potential.

Joules joined AIM in May 2016 after it raised £66m at 160p a share and at one stage the share price had more than doubled, although it has fallen back. It is still above the flotation price at 257p.

Sales
Overall revenues were 17% ahead at £218m, which is underlying growth of 13%. Retail sales were 23% ahead at £159.1m, although some of this growth came from switching Next Label and John Lewis womenswear from wholesale to retail. That is around £8m of revenues. Online sales are around 50% of the retail total and are growing rapidly, but store sales were ahead even though the growth expectations were downgraded earlier in the year.

Wholesale revenues were still 3% higher at £57.1m. The underlying growth in wholesale was 22%, due to the increase in international sales. US sales are growing strongly, but margins are lower.

The rest of the revenues come from licensing, such as for sofas in DFS.

The dividend is expected to be increased from 2p a share to 2.6p a share.

Prospects
Joules intends to put further focus on the US by expanding outside of the wholesale market. There will be additional investment in marketing to US consumers and there could be news about this with the figures.

The US should have at least reached breakeven last year. Once this moves into profit the group margins will improve.

Store revenues are expected to grow, but they could fall to less than one-fifth of the total by 2022-23. The online revenues would grow far faster and could double its share to around one-third. There should be indications of the continuing trend in the figures.

Rating
The shares are trading on around 19 times 2018-19 earnings. An improvement in profit to £17m is anticipated in the year just started, which would reduce the rating to 17.

Peel Hunt has previously forecast compound annual growth in pre-tax profit of 14.5% over three years. The only one of the larger, growing retail groups that is set to grow faster is boohoo (LON: BOO) and that is on a much higher rating.

The decline in the share price offers a chance to gain exposure to a business with a strong brand and good growth prospects at a reasonable valuation.

and

[elpirata] 22/7/2019 11:54

lets see if prelims tomorrow are the start of another annual run up to £3+

[daymer58] 26/6/2019 15:30

Still believe with the recent events it is a premier M&A target .Strong brand name and good overseas exposure.

[the big fella] 05/6/2019 11:59

From personal experience I used to buy a lot of their polo tops, especially in the sale, as they were of a good quality, decent designs (for a middle-aged man) and a normal cut. More recently I have noticed the cut is skinnier, and they aren’t as long. No good for me so they no longer get my business. However the question is for every older, longer term customer they lose do they replace with more younger customers. I am not so sure.

[daymer58] 05/6/2019 11:46

Earnings upside surprise tomorrow ?

[daymer58] 19/5/2019 15:09

"The forgotten stock "The stock is about to break out from a chart point view.But has an incredible strong brand namenew CEOand good overseas exposure, weak pound Massive buy at these levels

[harry6804] 18/4/2019 13:46

Anyone know the next update / report date.. it's looking rather sluggish at the moment. Thanks

[hampton58] 12/4/2019 08:04

Buy note from liberum

[hampton58] 15/3/2019 12:48

Small buyer, pushed the stock today.Will find out if seller is cleared

[sphere25] 05/2/2019 14:06

Alot of buying being absorbed by a seller at 270 today. Just need to clear the fund mangler and this will be headed to test 300.

Sphere - long

EDIT: 06/02: Stock spiked higher intraday to 290. Looked like it was breaking out but one late seller has come back with abit of stock to clear to prevent the breakout. You can see by the move to 290 what this stock is capable of doing once a seller clears.

Will be buying a few more tomorrow to help push that breakout. Fundamentally undervalued with the international growth this stock.

[elpirata] 30/1/2019 14:05

10%+ profit so far for anyone who bought below £2.50

[hampton58] 23/1/2019 08:11

Absolutely Let us see what Peel Hunt says

[babbler] 23/1/2019 07:57

impressive set of results considering the general market. imo.

[hampton58] 21/1/2019 18:27

Will surprise the market 15% upside

[elpirata] 18/1/2019 12:42

interims next Weds, this is the shining exception to general retail malaise

[gopher] 08/1/2019 18:18

They currently sell onPE of 22 2017/8 but aoplying this 2018/19 gives a share price of 300p

Fashion is not 100% cast iron but looks a retail winner and I think we could see progression to this level

[hampton58] 08/1/2019 08:23

Half of revenues on line