boohoo group plc (LON:BOO) have today provided a trading statement for the three months to 31st May 2021.
| Three months to 31 May | |||||
| £ million | FY22 | FY21 | Change | CER(1) | 2yr Growth |
| Group total revenue | 486.1 | 367.8 | 32% | 32% | 91% |
| Revenue by region | |||||
| UK | 274.6 | 183.0 | 50% | 50% | 95% |
| ROE(2) | 54.7 | 63.4 | -14% | -12% | 43% |
| USA | 131.9 | 92.0 | 43% | 40% | 157% |
| ROW(3) | 24.9 | 29.4 | -15% | -10% | 3% |
(1) CER designates Constant Exchange Rate translation of foreign currency revenue. (2) ROE is rest of Europe. (3) ROW is rest of world.
Financial Highlights
· Strong revenue growth of 32%, with 2yr CAGR of 38%
· Gross margin for the three months 55.0%, in line with 2 years ago and down 60bps vs. a strong comparative in the first quarter last year
· Net cash of £199.1 million (28 February 2021: £276.0m, reflecting £143.5m of investments across offices and infrastructure)
Operational Highlights
· Successful integration of Dorothy Perkins, Wallis and Burton brands onto our multi-brand platform
· Launch of the new Debenhams digital department store, with fashion, beauty and homewares
· Distribution centre in Wellingborough now live with Daventry site on schedule for operational use in Q2, supporting the next phase of the Group’s growth with significant job creation
· All of the Group’s London-based brands now operating from our new offices in Soho
Sustainability highlights
· Published separately today a further progress report from Sir Brian Leveson on the Group’s Agenda for Change programme, which highlights the excellent progress that the Group continues to make
· Joined the Fast Forward initiative for auditing of our UK supply chain, which the Group will transition to over the next twelve months
· Further substantial progress on Agenda for Change, with the launch of our UP.FRONT sustainability strategy and the publication of our UK supplier list in March and global supplier list on track for publication in September
Guidance
The Group has made a strong start to its financial year against challenging comparatives, and in line with expectations uncertainty remains in a number of markets that the Group operates in around the world as a result of the pandemic. Guidance for the year ending 28 February 2022 therefore remains unchanged, with revenue growth of around 25% and adjusted EBITDA margins expected to be in the region of 9.5-10%.
Our medium-term guidance for 25% sales growth per annum and a 10% adjusted EBITDA margin remains unchanged, reflecting the board’s confidence in the Group’s prospects as it continues to invest in building for the future.
John Lyttle, CEO, commented:
“I am delighted with our performance in the first quarter, particularly as it was always going to be challenging to produce strong growth rates on last year, when lockdowns around the globe drove such high traffic to online retailers. The two year CAGR of 38% highlights the Group’s continued phenomenal growth, with revenues having increased 91% over the last two years, with particularly strong performance in key markets such as the UK and US, where sales have more than doubled.
This quarter we have integrated and relaunched our newly-acquired brands, Dorothy Perkins, Wallis and Burton, and we have also relaunched Debenhams for fashion, beauty and homeware, adding ranges, with an exciting pipeline of brands for our digital department store.
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.”
