Boohoo interim revenues up by 43% as annual sales break £1bn barrier

Boohoo

Boohoo, the online fashion group, has posted half-year sales up 43% to £564.9 million saying all brands and geographies had performed well. The Manchester group has said its sales over the past 12 months had broken the £1 billion barrier for the first time.

Adjusted profit before tax up by 45% to £51.8 million in the six months to 31 August, while gross margin was slightly down at 54.3%.

The UK performed well with sales up 35% as the group continues to defy tough trading endured elsewhere in the market, with international sales up 55%. International now accounts for 44% of group sales.

Financial highlights for each of its brands were as follows:

boohoo

  • Revenue £281 million, up 34% with market share gains in all focus markets
  • Gross margin 53.6%, up 20bps
  • 8.4 million active customers, up 20% on prior year

PrettyLittleThing

  • Revenue £237.6 million, up 41%
  • Gross margin 55.3%, down 200 bps
  • 5.7 million active customers, up 43%
  • Outstanding market share and revenue growth in all markets

Nasty Gal

  • Revenue £43.9 million, up 148%
  • Gross margin 54.2%, down 480bps driven by refinements to the customer proposition
  • 1.5 million active customers, up 112%
  • Strong revenue growth across all markets, gathering momentum

During the period the group also acquired the Miss Pap, Karen Millen and Coast brands, which will be relaunched this autumn. Karen Millen and Coast will no longer trade from physical retail stores.

Chief executive John Lyttle hailed the performance as “fantastic”. “We have delivered significant market share gains across all of our key markets, and for the first time in our history, revenue has exceeded £1 billion in the last 12 months. We have delivered strong growth and operating leverage in our more established brands and will continue to invest in both our more established and newly-acquired brands.

“We enter the second half of the year well-placed and confident that our platform, which combines the latest fashion, great prices and excellent customer service, all underpinned by a well-invested infrastructure, will deliver further market share gains,” he said.

Steve Miley, a senior market analyst at www.asktraders.com commented: “Over the six months to 31 August 2019, the group’s revenue has recorded a staggering 43% increase to £564.9 million over the period with the Boohoo and PrettyLittleThing brands recording 34% and 43% increase in sales. Nasty Gal has revenue more than doubled over the period. The international sales have grown 55% increasing the contribution to total revenue to 44%. The UK sales have also increased by 35%. New apps developed in house for boohoo, boohoo Man and Nasty Gal (that were released over the period) have contributed to the increase in sales.

“The number of active customers over the period have increased 30% to 13 million, with an average spend of £43.26, also a slight increase.

“Adjusted profit before tax has a similar increase to the sales figure, growing by 45% to 51.8% whilst the earnings per share increased 78% to 2.48%. The automation of the Burnley distribution centre has contributed to increase the efficiency of the operation.

“The company has reiterated the guidance from earlier this month but mentioned that the medium-term target is for an organically sales growth of 25% with EBITDA margin of 10%. The company cash position will allow to acquire further complementary brands to increase the demographic it appeals to.”