Boohoo ups full year guidance on strong holiday sales

For the four months to December 31, 2020, Boohoo Group plc reported strong revenue growth of 40 percent to 660.8 million pounds, with growth across all brands and geographies.

Gross margin for the four months was 53 percent, down 50 bps year on year. Following the strong peak trading performance, the group expects revenue growth for the financial year to February 28, 2021 to be 36 percent to 38 percent, ahead of our previous guidance of 28 percent to 32 percent and continues to expect to deliver an adjusted EBITDA margin for the year at around 10 percent.

Revenue continues to grow at Boohoo

Commenting on the trading results, John Lyttle, the company’s CEO, said: “Our team worked exceptionally hard in 2020 as we navigated the many challenges, including the Covid-19 pandemic and the successful acquisition and integration of Oasis and Warehouse. Growth has been strong across our multi-brand platform and we have continued to grow our market share across all geographies.”

The company’s medium-term guidance remains for 25 percent sales growth per annum and a 10 percent adjusted EBITDA margin, reflecting the board’s confidence in the Group’s prospects as it continues to invest to support growth and raise standards across its supply chain.

The company added that it is close to finalising an extension of UK warehousing capacity (UK3) with a new site to open in April 2021 that will support the creation of up to 1,000 jobs in the first 12 months of operation. The site is intended to be utilised by the Nasty Gal, Karen Millen, Coast, Oasis and Warehouse brands, with a transition expected over the course of the first half of the next financial year.

Picture: Boohoo newsroom