Revenues soar by more than 48% at online fashion firm Boohoo
Online fashion firm Boohoo saw its revenues soar by 48% to £857m in the last 12 months.
The hugely successful Manchester retailer released its final results this morning and said that gross profit had risen by 53% to £469m.
Profit before tax at the firm was up by 38% to £59.9m. Adjusted profit was up 49% to £76.3m.
Boohoo has continued to grow from strength to strength even though the original founders have taken a step back from running the business.
It was announced in September that Primark’s former chief operating officer John Lyttle was taking over as chief executive.
Mahmud Kamani has taken up the role as group executive chairman of the company while Carol Kane is now an executive director.
The business is one of the most successful in the North West and is aiming to dominate the online fashion market.
The company said revenue growth across all geographies was strong with UK up 37% and international up 64%.
Revenue at boohoo was £434.6 million up 16% and PrettyLittleThing had revenue of £374.4 million, an increase of 107%.
Revenue at Nasty Gal was £47.9 million up 96%.
A new Burnley distribution centre extension has been build and fit-out completed, with automation live this month.
Meanwhile, PrettyLittleThing’s distribution centre successfully moved to a larger facility in Sheffield.
Boohoo now has seven million active customers, an increase of 9%.
The firm said trading in the first few weeks of the financial year has been encouraging.
Group revenue growth for the financial year is expected to be 25% to 30% with an adjusted EBITDA margin of around 10% and capital expenditure in the region of £50m to £60m.
Boohoo will continue to make investments across the group as part of the vision to lead the global fashion e-commerce market.
The firm is targeting sales growth of 25% per year, with an adjusted EBITDA margin of around 10% over the medium term.
John Lyttle said: “I am very excited to have joined the boohoo Group at this key stage of its growth, with the group’s disruptive and proven business model having delivered yet another excellent set of financial and operational results.
“In my short time within the business, I am delighted to have been able to meet a number of hugely talented people and have already been able to see many parts of the business.
“This has confirmed my belief and optimism that the group’s investments into its brands and infrastructure have allowed it to develop a scalable multi-brand platform that is well-positioned to disrupt, gain market share and capitalise on what is a truly global opportunity.”
Russ Mould, investment director at Manchester investment firm AJ Bell, said: “BooHoo’s full year results show revenue growth of nearly 50%. That’s a nice backdrop for new CEO John Lyttle to start implementing his own take on how to increase the company’s size and scale.
“Interestingly, its PrettyLittleThing brand continues to be the faster growth side of the business, so much so that its revenue contribution to the group is fast approaching the same as the core BooHoo brand.
“This rapid earnings growth implies BooHoo will have to pay a decent amount of money to buy the remaining 34% of PLT it doesn’t already own.
“It can exercise an option to buy the final stake in PLT on 28 February 2022 at market value, to be determined by one of the major accounting firms.
“It bought the original 66% stake for £3.3m in December 2016 when PLT was making £17m revenue.
“Sales have now rocketed to £374.4m. It would be fair to suggest it will have to pay at least £400m to buy the final slug of PLT.”