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Sales double at Boohoo

Revenue at Boohoo group more than doubled in the six months to 31 August, as sales across all three brands soared. 

Group sales for the six months jumped 106% to £262.9m compared to the same period in 2016, while EBITDA was up 68% to £27.8m.

Gross margin slipped 200 basis points to 55.3%, in line with planned investments.

At the Boohoo brand, sales for the six months were up 43% to £181.8m, while gross margin fell 300 basis points to 52.3%.

PrettyLittleThing’s sales were up 289% on last year, reaching £72.7m, while sales at Nasty Gal have increased month on month since it was relaunched in March, reaching £8.4m.

As a result of its first half performance the etailer has now raised its group revenue growth guidance for the full year to 80%, up from 60%.

Revenue growth from the Boohoo brand is expected to be at the upper end of previous guidance, at around 30%, while growth at PrettyLittleThing is now expected to be approximately 150% above the 12 month revenue to 28 February 2017 of £55m - this is double the previous guidance of 75%. The balance of the group’s growth will come from the Nasty Gal brand.

Following the “significantly better-than-expected” revenue growth from PrettyLittleThing and its investment in price, promotion and marketing, the group said it now expects adjusted EBITDA margins to be between 9% and 10%.

Mahmud Kamani and Carol Kane, joint CEOs, said: “Boohoo’s revenue has continued to grow across all geographies, with international growth being strongest as we continue to increase our market share overseas, and the newly acquired PrettyLittleThing brand has exceeded our growth expectations.

“The integration of Nasty Gal and PrettyLittleThing have been successful, adding diversity to our business whilst enabling us to draw upon our strengths in marketing, sourcing, operations and customer service to deliver profitable results and greatly increasing the group’s potential.

“We have continued to make significant investment in IT infrastructure and warehouse capacity to ensure stable and sustained execution of the group’s growth strategy and plans are progressing well for the next phase of longer-term requirements for warehouse capacity.

“We will continue to invest in the customer proposition, further develop our brands and maximise the considerable opportunities that a global marketplace affords us. The strong performance in the first half-year and our expectations for the second half have given us confidence to raise guidance for the full year.”

 

Readers' comments (1)

  • Sourcing in UK? Are factories paying minimum wages? correctly recording working hours? Keeping double books? Declaring workers employed 20 hrs so they can claim benefits? Complying with anti slavery rules I.e EU labour trafficking?

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