14th Jan 2021 09:05
(Alliance News) - boohoo Group PLC on Thursday posted hefty sales jumps across the board in the final four months of 2020, and the online-only fast fashion company bumped up its annual revenue growth guidance.
boohoo said revenue in the year to February 28 could grow by as much as 38% from GBP1.23 billion.
In the four months to December 31, a period which includes the crucial Christmas trading stretch, boohoo's total revenue jumped 40% to GBP660.8 million from GBP473.7 million a year earlier.
By region, the US saw the largest growth, with revenue jumping 52% to GBP167.7 million. UK revenue rose 40% to GBP357.2 million, and the Rest of Europe posted growth of 30% to GBP90.4 million.
In the Rest of the World segment, revenue climbed 20% to GBP45.5 million.
For the ten months to December 31, group revenue was 42% higher at GBP1.48 billion from GBP1.04 billion a year earlier.
"I'm delighted with the group's performance over the peak trading period. Our team worked exceptionally hard in 2020 as we navigated the many challenges, including the Covid-19 pandemic and the successful acquisition and integration of Oasis and Warehouse," Chief Executive John Lyttle said.
"Growth has been strong across our multi-brand platform and we have continued to grow our market share across all geographies."
For financial 2021, boohoo now expects revenue to rise by between 36% and 38%, raising its forecast from growth between 28% and 32%.
It still expects an adjusted earnings before interest, tax, depreciation, and amortization margin at roughly 10%, "despite Covid-19 related headwinds for distribution costs, planned gross margin investment and accelerated discretionary customer acquisition spend".
boohoo also unveiled plans to extend its warehouse capacity with a new site penned to open in April. The site, which the retailer labelled UK3, will create up to 1,000 jobs in its first 12 months of operation.
boohoo added: "The site is intended to be utilised by the Nasty Gal, Karen Millen, Coast, Oasis and Warehouse brands, with a transition expected over the course of the first half of the next financial year. The addition of UK3 will free up capacity within our existing network as we develop these facilities to support future expansion plans."
The AIM-listed firm also hailed the progress it has made with its Agenda for Change programme. boohoo back in November said it called on Brian Leveson to provide independent oversight amid a probe into its supply chain.
Leveson, also known for chairing the eponymous inquiry into ethics of the UK press in the wake of the phone scandal, will report directly to boohoo's board.
"Continued progress is being made on the mapping and auditing of the Group's tier one and tier two supply base," boohoo added on Thursday.
Shares in the company were 0.7% lower at 366.68 pence each in London on Thursday morning. The stock had risen 1.9% on Wednesday after online peer ASOS PLC posted a promising trading update.
By Eric Cunha; [email protected]
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