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Sales and profits soar at Boohoo

Boohoo Group has revealed revenue growth of 50% to £395.3m for the six months to 31 August, as profit before tax increased 22% to £24.7m.

Gross margin was up 200 basis points compared with the same period in 2017, to 55.3%.

Boohoo said it saw strong sales growth across all territories. UK sales were up 43% and international sales – which now account for 41% of total sales – increased by 62% year on year.

The group said it had a strong balance sheet and net cash of £155.6m, compared to £119.2m in 2017.

During the half-year, the PrettyLittleThing warehouse relocation to Sheffield completed. Automation of the Burnley warehouse site to drive future efficiency is on schedule.

At the Boohoo fascia, revenue was up 15% to £209m, while gross margin improved by 110 basis points to 53.4%. The number of active customers on the site was up 15% on 2017 to 6.7 million.

At PrettyLittleThing, revenue jumped 132% to £168.6m, and gross margin was up 250 basis points to 57.3%.

NastyGal revenue was up 111% year on year to £17.7m. However, gross margin dropped 480 basis points to 59%.

Group revenue growth for the year to 28 February 2019 is expected to be between 38% and 43% – up from the previous guidance of 35% to 40% – with adjusted EBITDA margin of between 9% and 10%. The etail group reiterated its medium-term guidance to deliver sales growth of at least 25% per annum and EBITDA margin of 10%.

Mahmud Kamani and Carol Kane, joint CEOs, said: “Our group results for the first half year show yet another strong performance, delivering record sales and profits. All of our brands performed extremely well across all territories as we continue to gain market share. We achieved market-leading growth in all markets, with Rest of Europe and the USA being particularly pleasing. Growth in the UK, our largest market, remains very strong.

“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 of net sales globally, in line with our vision to lead the fashion ecommerce market. This relocation was carried out with a low level of disruption to the operations of PrettyLittleThing and is a credit to the project team. 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.”

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