Boohoo posts 32 percent sales growth in the first quarter

For the three months to May 31, 2021, Boohoo Group plc reported revenue growth of 32 percent, with two year CAGR of 38 percent. Gross margin for the three months was 55 percent, in line with two years ago and down 60bps against a strong comparative in the first quarter last year.

Commenting on the trading update, John Lyttle, the company’s CEO, said: “I am delighted with our performance in the first quarter, particularly as it was always going to be challenging to produce strong growth rates on last year, when lockdowns around the globe drove such high traffic to online retailers.”

The company said that it integrated Dorothy Perkins, Wallis and Burton brands onto multi-brand platform. The company also announced the launch of the new Debenhams digital department store, with fashion, beauty and homewares.

The company’s distribution centre in Wellingborough is now live with Daventry site on schedule for operational use in the second quarter.

Boohoo said that the guidance for the year ending February 28, 2022 remains unchanged, with revenue growth of around 25 percent and adjusted EBITDA margins expected to be in the region of 9.5-10 percent.

The company’s medium-term guidance for 25 percent sales growth per annum and a 10 percent adjusted EBITDA margin remains unchanged.