Joules Group PLC (LON:JOUL) said full-year revenue and profit before tax will be ahead of current analyst consensus expectations of £187mln and £4mln respectively.
In the year to 31 May 2020, revenue came in at £190mln while the retailer posted a £2mln loss before tax.
Since posting interim results in January, the fashion designer has continued to deliver positive performance across its retail channels that could trade within the UK’s lockdown restrictions.
Demand on Joules’ own websites climbed 50% in the year-to-date, up from the 47% growth reported for the first half of the financial year.
Stores have performed ahead of management’s expectations since re-opening following the third national lockdown, with sales for the four weeks since reopening ahead of the comparable period two years ago, helped by pent-up demand.
Garden Trading, which was acquired in February, has performed ahead of expectations over the first three months since the acquisition, with sales up 85%. The business has now been integrated.
Analysts at house broker Liberum raised the target price to 400p from 300p “as Joules continues to embed its omnichannel model, diversify and grow its revenue streams and evolve into a true lifestyle brand”.
“Short-term we see Joules as particularly well-placed, given its family focus and lifestyle locations, when set against the staycation theme likely to play out over Spring/Summer 21,” they commented.
“Long-term we are encouraged by the group’s much strengthened position over the past few years, driven both through its much enhanced digital platform and capabilities.”
Shares rose 5% to 273p on Tuesday morning.