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Boohoo posts strong revenue and profit growth

By Prachi Singh

22 Apr 2020

Business

Revenues at Boohoo Group Plc for the year increased by 44 percent at current and constant exchange to 1.235 billion pounds (1.52 billion dollars) with strong revenue growth across all territories and brands. However, since the middle of March, trading has been mixed, as a result of the impact of the Covid-19 pandemic, initially with a marked decrease in year-on-year growth. Boohoo said performance has improved in more recent weeks and it now anticipates improved year-on-year growth of group sales during April but remains cautious regarding our outlook, as a result of the uncertainty caused by the pandemic.

Commenting on the full year trading, John Lyttle, the company’s CEO, said: “Whilst recent events have understandably overshadowed what has been a great year for Boohoo, they have also highlighted its key strengths. Although there is near-term uncertainty in the markets that we operate in, the group is underpinned by its incredibly strong balance sheet and is well-placed to leverage its scalable multi-brand platform and to continue to disrupt fashion markets around the world.”

Performance of Boohoo Group’s brand portfolio

The company said in a statement that adjusted EBITDA was 126.5 million pounds (155.6 million dollars), an increase of 50 percent on the previous year, while adjusted EBITDA margin reached 10.2 percent. Profit before tax was 92.2 million pounds (113.4 million dollars), an increase of 54 percent, while adjusted diluted earnings per share was 5.88p, up 42 percent on the prior year and diluted earnings per share rose to 5.35p, an increase of 44 percent.

The company added that Boohoo including BoohooMan saw revenue for the year increase to 600.7 million pounds (739.7 million dollars), up 38 percent on the previous year, with continued growth in all key focus markets. Growth in both the UK and international markets has been strong, driving market share gains across key geographies. Gross margin decreased slightly by 30bps to 52.6 percent.

PrettyLittleThing (PLT) achieved revenue growth of 38 percent over the previous year, reaching 516.3 million pounds (636 million dollars), while gross margin decreased to 55.6 percent. Nasty Gal reported revenue growth across all territories with an overall 106 percent increase to 98.8 million pounds (121.7 million dollars). USA revenue continued to grow strongly and remains the brand’s largest territory. Gross margin reduced to 54.2 percent.

MissPap, Karen Millen and Coast posted combined revenue of 19 million pounds (23.4 million dollars) for the year, with MissPap revenue commencing in April 2019 and Karen Millen and Coast in October 2019. Gross margin was 51.1 percent.

Picture:Boohoo Group media centre

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