- Wednesday, May 01, 2024
By: Radhakrishna N S
BOOHOO climbed a new high on Tuesday (14) after it recorded a strong revenue growth followed by a positive outlook for the financial year 2020.
Shares moved up almost five per cent to 331p, valuing the company at £3.8 billion.
Revenues at the Manchester-based business jumped 44 per cent to more than £1bn in the 10 months to the end of December.
Investors confidence on the British fashion retailer may have boosted amid strong revenue report and a positive guidance for the financial year to February 2020.
At the Mahmud Kamani-founded business, revenue will be 40 per cent to 42 per cent higher for the full year, compared with the previous guidance of 33 per cent to 38 per cent.
The company’s profit margins will also be slightly higher than previously indicated.
Boohoo said in a statement: “The group revenue growth for the financial year to February 29, 2020, is expected to be 40 per cent to 42 per cent, ahead of our previous guidance of 33 per cent to 38 per cent.
“We expect the group adjusted EBITDA margin to be 10 per cent to 10.2 per cent, ahead of our previous guidance of around 10 per cent. All other guidance for the current financial year and our medium-term guidance to deliver sales growth of 25 per cent per annum and 10 per cent EBITDA margin remains unchanged.”
Nasty Gal was the company’s best-performing brand with revenue up 102 per cent for the four-month period ended in December.
The company’s another brand PrettyLittleThing also recorded a 32 per cent rise in its revenues to £190.8m during the four-month period.
Boohoo said it achieved a revenue of £473.7 million for the four months ended December 31, compared with £328.2m during the same period in fiscal 2019.
The latest Boohoo report has come amid turbulent market condition in the British retail sector. Retailers have continued to struggle with tough conditions on the high street.
The sector suffered its worst year on record in 2019, according to the British Retail Consortium.
The fashion retailer does not have any stores. It didn’t mention about the performance of its newly acquired brands. However, it said that they were “showing great promise”.
John Lyttle, CEO at Boohoo, said: “…The group has enjoyed record trading in the last four months of 2019. All of our brands have performed exceptionally well and delivered strong market share gains.
“We have continued to see operating leverage in our more established brands, and will continue to invest in them and our newly‐acquired brands. The newly‐acquired brands, MissPap, Karen Millen and Coast, are showing great promise and open different target markets for the group, in line with our strategy to build our multi‐brand platform.”
Meanwhile, Boohoo has appointed Brian Small as deputy chairman of the board with immediate effect. Small is an existing independent non-executive director, appointed last year, and currently serves as chair of the group’s audit committee.
Last year, Boohoo pulled the Karen Millen and Coast brands out of administration.
In early 2017, the group extended its customer offering through the acquisition of vibrant fashion brand PrettyLittleThing, and free‐thinking brand Nasty Gal.
In 2019, the group acquired the MissPap brand and in August 2019, the Karen Millen and Coast brands, all complementary to the group’s scalable multi‐brand platform.
