Boohoo posts strong Q1, acquires Oasis and Warehouse

Revenues in the first quarter at Boohoo Group totalled 367.8 million pounds (462.4 million dollars), up 45 percent year on year, with strong underlying growth across Boohoo, PrettyLittleThing (PLT) and Nasty Gal. The group has also announced the acquisition of fashion brands, Oasis and Warehouse, for 5.25 million pounds in cash.

Commenting on the first quarter trading, John Lyttle, Boohoo Group Plc CEO, said: “During unprecedented and challenging times, the group has delivered a very strong trading and operational performance. Whilst there is a period of uncertainty within the markets in which we operate, the group is well-positioned to continue making progress towards leading the fashion e-commerce market globally.”

Boohoo achieves growth despite impact of Covid-19 pandemic

The company said in a statement that its newest brands - MissPap, Karen Millen and Coast continue to trade strongly having successfully integrated onto the group’s scalable platform last year. The company added that trading in the middle of March through to early April was mixed, as a result of the impact of the Covid-19 pandemic, initially with a marked decrease in year-on-year growth, while performance across all of our brands and geographies improved throughout April, with a robust performance delivered in May.

Despite the uncertain backdrop, Boohoo further said that the company delivered a strong gross margin performance, up 60 basis points year on year to 55.6 percent. Areas such as loungewear and athleisure performed well as customer buying habits adapted to a stay at home lifestyle.

Boohoo announces acquisition of Oasis and Warehouse

The group has also announced the acquisition of the online businesses and all associated intellectual property of two brands, Oasis and Warehouse, for 5.25 million pounds in cash from Hilco Capital Limited.

In line with previous acquisitions, the group will, in the coming months, integrate Oasis and Warehouse onto its platform, allowing both brands to benefit from its insight, infrastructure, supply chain and operating model. In their most recent financial year ending February 2020, unaudited management information shows that Oasis and Warehouse generated direct online revenues of 46.8 million pounds in aggregate.

On May 28, the company also completed the purchase of the remaining 34 percent minority interest in Prettylittlething.com Limited. The group continues to expect this acquisition to be significantly earnings enhancing, with PLT delivering a strong trading performance in the period.

In addition, on May 15, the group raised gross proceeds of 197.7 million pounds from shareholders through a placing in order to take advantage of numerous M&A opportunities and finished the quarter with in excess of 350 million pounds of net cash on our balance sheet.

Boohoo expects to deliver profitable year ahead

For the current financial year ending February 28, 2021, the group expects to deliver another year of strong profitable growth, and ahead of market expectations. Revenue growth is anticipated to be approximately 25 percent for the current financial year, with an adjusted EBITDA margin of 9.5 percent to 10 percent.

This guidance, the company further said, reflects expectation for an ongoing period of consumer uncertainty, likely promotional intensity in markets in which we operate, as well as continued near-term carriage inflation for some of its overseas markets. This guidance also reflects ongoing investments into more established brands as well as anticipated investments into new and recently acquired brands through the course of the financial year. The company continues to maintain medium term guidance for 25 percent sales growth per annum and a 10 percent adjusted EBITDA margin, which remains unchanged.

Picture:Boohoo media gallery