MIDAS SHARE TIPS UPDATE: Retailer Joules gives investor funds a little good with the share price of 78%
Joanne Hart, financial post on Sunday
Joules Group is known for colorful boots and outdoor clothing
The British main streets are under pressure, hit by rising costs, stagnating sales, economic uncertainty and the rise of online shopping.
Not every retailer, however, is made equal. Joules Group, known for its colorful boots and outdoor clothing, prefers to see itself as a lifestyle brand & # 39 ;.
The term may sound unattractive to the more down-to-earth consumer, but the company's strategy works.
Midas recommended the shares in July 2016 when the shares were 171 p and the company had only been on target for one month. Today the price is 78 percent higher at 302p, whereas in the summer it was almost as high as 390p.
The recent autumn is exaggerated, because the company is growing rapidly in the shopping street, online and abroad. Revenue rose by more than 18 percent in the year to the end of May to £ 186 million, the profit increased by 29 percent to £ 13 million and the dividend was 11 percent higher at 2p.
Joules has continued to do well since then, not least because it is rigorously focused on making high-quality, reasonably priced products with a distinctive British feel. The group, based in Market Harborough, Leicestershire, has 125 stores, many of which are located in relatively prosperous market cities.
Chief executive Colin Porter is branched into new areas such as sunglasses, watches and even sofas, there is a flourishing international business in the US and Germany and a thriving online division that accounts for 40 percent of sales.
This mix of products and sales channels should help Joules to withstand the headwinds to its competitors and brokers are optimistic about the outlook, expecting a profit of nearly £ 15 million in the current year, rising to over £ 18 million by 2020 and accompanied by healthy dividend growth.
Reassuringly, founder Tom Joule still holds 32 percent of the shares and remains on the board almost 30 years after setting up the company in his early twenties.
Midas pronunciation: The fall in the share price of Joule is largely attributable to individual shareholders who are frightened by circumstances on the street. Big institutions keep up and long-term investors have to follow their example. New investors can now also find value.
Traded on: Target Ticker: joul Contact: joulesgroup.com or 01858