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Boohoo reports sales growth in 2021 despite supply chain issues

Camilla Rydzek
10 March 2022

Boohoo Group has published its trading update for the fourth quarter and 12 months ending 28 February 2021, revealing net sales growth despite high returns and international supply chain issues.

In the fourth quarter of 2021 Boohoo recorded a net sales growth of 7% and a growth of 48% compared to pre-pandemic levels two years ago. Whilst results were within previous guidance, the company had been impacted by a higher returns rate due to its product mix and expect this "to continue in the first half of the full year 2023".

Over the 12 months to 28 February 2021, the company saw gross sales rise 14%, representing a growth of 61% compared to pre-pandemic levels.

Boohoo added that it expected an adjusted earnings before tax (EBITDA) results for the 2021 financial year to be about £125 million, in line with prior guidance issued in December.

The company commented that Boohoo operations in the UK continued to "deliver a strong trading performance", with its product proposition "resonating with customers". The company's performance internationally was impacted by longer customer delivery times as a result of pandemic-related supply chain pressures.

John Lyttle, Boohoo Group CEO, commented: "The Group has delivered strong growth over the last two years, which has translated into significant market share gains. We are confident that pandemic-related headwinds are short-term in their nature, and our focus is to ensure the business is well positioned for growth as these headwinds ease."

Norway’s central bank, Norges Bank, announced this week that it had almost tripled its stake in Boohoo, becoming its second largest investor. Norges Bank increased its stake in the company from 4.2% to 11.7%.

The company also announced that its efforts to tackle its supply chain issues had been declared a "success" by Sir Brian Leveson, concluding that the majority of the Agenda for Change (A4C) programme had been implemented.

Boohoo's full year trading update will be published in May 2022.

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