In its results statement for the six months to August 31, 2018, Boohoo Group Plc said revenues reached 395.3 million pounds, up 50 percent or 49 percent CER. The company expects group revenue growth for the year to February 28, 2019 to be 38 percent to 43 percent, up from our previous guidance of 35 percent to 40 percent, with adjusted EBITDA margin between 9 percent and 10 percent. Boohoo has reiterated the medium term guidance to deliver sales growth of at least 25 percent per annum and EBITDA margin of 10 percent.
Commenting on the first half trading, Mahmud Kamani and Carol Kane, the company’s joint CEOs, said in a statement: "Our group results for the first half year show yet another strong performance, delivering record sales and profits. We successfully executed a major relocation of the distribution centre for PrettyLittleThing, which represents a key milestone as we develop a distribution network capable of generating 3 billion pounds of net sales globally. Our extended distribution centre in Burnley, which will have a significant element of automation to drive efficiency savings, is scheduled for operational use in 2019."
Review of Boohoo’s first half performanceThe company reported strong revenue growth across all geographies with revenues in the UK rising 43 percent and international revenue increasing 62 percent. Adjusted EBITDA for the period was 39.6 million pounds, an increase of 43 percent on the first half of the previous year.
Adjusted profit before tax was 35.8 million pounds, again an increase of 43 percent, while profit before tax was 24.7 million pounds, an increase of 22 percent. Adjusted diluted earnings per share was 1.99p, up 31 percent on the prior half year and basic earnings per share rose to 1.42p, an increase of 14 percent.
Boohoo brand revenue of 209 million pounds, rose 15 percent with market share gains in all focus markets. Gross margin was 53.4 percent, up 110bps; while retail gross margin was 56 percent, up 160bps. The number of active customers reached 6.7 million, up 15 percent on prior year.
Revenues at PrettyLittleThing rose 132 percent to 168.6 million pounds. Gross margin of 57.3 percent was up 250bps; while retail gross margin of 59 percent, was up 200bps. Number of active customers reached 4 million, and increase of 99 percent over the prior year first half.
Nasty Gal revenues of 17.7 million pounds, up 111 percent. Gross margin of 59 percent, was down 480bps driven by refinements to the customer proposition, while number of active customers jumped by 313 percent to 0.6 million. The brand witnessed strong revenue growth in the USA and international markets.
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