15th Jun 2021 10:26
(Alliance News) - boohoo Group PLC on Tuesday reported rising sales in the three months up to May 31 as its brand range and online presence continues to grow.
Manchester, England-based fast fashion retailer said it has made a "strong start" to its financial year despite market uncertainty relating to the Covid-19 pandemic. Revenue in three months to May 31 was GBP486 million, up 32% from GBP368m in the same period the year before. The retailer reported a compound annual growth rate of 38% over a two-year period.
Trading was significantly higher in the UK and US, increasing 50% and 43% respectively. Whilst sales declined in the Rest of Europe, down 14%, and Rest of World divisions, down 15%.
The company predicted revenue growth of around 25% and an adjusted earnings before interest, tax, depreciation and amortisation margin between 9.5% and 10% for the year ending February 28, 2022.
The retailer has continued to expand its brand portfolio and online presence. In the three-month period, the retailer invested GBP144 million in offices and infrastructure, spending GBP72 million on a new Soho office for its London-based brands in April. It also noted the "successful integration" of its most recently acquired brands - Dorothy Perkins, Wallis and Burton. The company also recently launched a digital Debenhams department store after the historic chain closed its remaining 28 UK-stores in May.
boohoo provided a progress update on its 'Agenda for Change' programme supply chain ethics programme. boohoo back in November said it called on Brian Leveson to provide independent oversight amid a probe into its supply chain. Leveson chaired the eponymous inquiry into ethics of the UK press in the wake of the phone scandal.
The programme was instituted after the retailer faced claims of exploitations at its Leicester factory last summer. The company launched a review of its UK supply chain led by barrister Alison Levitt and committed to invest GBP10 million to end supply chain malpractice.
According to the most recent report, boohoo's UK suppliers are now obliged to be audited by independent third party ethical auditors, Verisio and Bureau Veritas. The supply chain will be audited on an ongoing basis with the company gradually switching to the Fast Forward forensic audit model in the next 12 months. After publishing its UK manufacturing list in March, boohoo has committed to publishing its global supplier list in September.
Chief Executive John Lyttle said: "We continue to make great progress on our Agenda for Change programme, with this morning's latest report from Sir Brian Leveson outlining the seriousness with which the group is determined to develop and demonstrate a gold standard in our supply chain.
"Our ongoing investment in infrastructure and our platform leaves us well-placed to maximise the opportunities for growth as we build the business for the future."
Boohoo shares were trading up 0.8% at 331.00 pence each in London on Tuesday morning.
By Scarlett Butler; [email protected]
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