22nd Apr 2020 10:14
(Alliance News) - boohoo Group PLC on Wednesday reported a bumper annual earnings rise but as focus shifts to the Covid-19 pandemic, the online retailer reported contrasting fortunes in the months of March and April.
Revenue in the year ended February 29 jumped 44% to GBP1.23 billion from GBP856.9 million, with pretax profit rocketing 54% to GBP92.2 million from GBP59.9 million.
"The group saw a strong end to the financial year ended February 29 and in the first two weeks of financial 2021 this trading momentum was maintained," boohoo said.
boohoo, one of the UK's market leaders in online apparel, also owns the PrettyLittleThing and Nasty Gal brands. It added to its portfolio over the course of last year with the acquisitions of MissPap, Karen Millen and Coast.
Revenue in its core boohoo brand was 38% higher at GBP600.7 million. It also rose 38% in PrettyLittleThing where annual revenue climbed to GBP516.3 million. At Nasty Gal, revenue more than doubled to GBP98.8 million.
Active customers rose by 28% for the boohoo brand, by 26% at PrettyLittleThing and by 88% at Nasty Gal.
boohoo added: "Since the middle of March, trading has been mixed, as a result of the impact of the Covid-19 pandemic, initially with a marked decrease in year-on-year growth. Performance has improved in more recent weeks and we are now seeing improved year-on-year growth of group sales during April.
"Given the uncertainty generated by the continually-evolving Covid-19 pandemic, it is not appropriate to provide guidance for the financial year ending February 28, 2021 at this stage."
boohoo said it benefits from "sufficient financial headroom" and had net cash of GBP241 million at the year end.
Chief Executive Officer John Lyttle said: "Whilst recent events have understandably overshadowed what has been a great year for boohoo, they have also highlighted its key strengths. Our business is founded on our ability to be agile and flexible, and it is at times like this when these abilities are tested."
boohoo faced a backlash in recent days, with the Union of Shop, Distributive & Allied Workers in the UK taking aim at the retailer for selling face masks "as a fashion item".
"Selling fashion clothing is not essential in a period of national emergency, but selling items that look like essential equipment is downright scandalous," USDAW said on Sunday.
"Boohoo is looking to make a quick profit out of a crisis, when they should be putting the national interest first by helping their staff to stay at home, protect the NHS and save lives."
The products have since been pulled.
The company also said it has added Kath Smith to its board as an independent non-executive director, with effect from May 1. Smith is also a non-executive at FTSE 100 retailer JD Sports Fashion PLC.
Sara Murray will step down as non-executive director, the company said.
boohoo shares were 6.0% higher at 287.80 pence each in London on Wednesday morning.
By Eric Cunha; [email protected]
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