Boohoo raises full year outlook after strong H1 revenue and profit growth
By Prachi Singh
30 Sep 2020
Boohoo Group revenue for the first half-year increased by 45 percent or 44 percent CER to 816.5 million pounds (1,048.4 million dollar). The company said in a statement that adjusted EBITDA for the period was 89.8 million pounds (115.3 million dollars), an increase of 48 percent, while profit before tax was 68.1 million pounds (87.4 million dollars), an increase of 51 percent and adjusted diluted earnings per share were 4.53p, up 56 percent on the prior half-year. Basic earnings per share rose to 4.08p, an increase of 42 percent.
Commenting on the first half update, John Lyttle, the company’s CEO, said: “Our business, along with many others, has faced some of its most challenging times in recent months. There are many challenges still ahead due to uncertainties posed by the COVID-19 pandemic, but despite these challenges there are many positives from our activities in the first half. We are pleased to be able to report a strong performance with continued high growth rates in revenue and strong profitability.”
Boohoo raises full year outlook on strong first half
The company added that group revenue growth for the year to February 28, 2021 is expected to be 28 percent to 32 percent, up from approximately 25 percent as previously guided, with adjusted EBITDA margin for the year at around 10 percent, increased from the 9.5 percent to 10 percent as previously guided. The company’s medium term guidance for 25 percent sales growth per annum and a 10 percent adjusted EBITDA margin remains unchanged.
The group’s largest market UK, accounting for 53 percent of group revenues witnessed growth of 37 percent was strong across all brands, gross margin increased from 50.3 percent to 52.1 percent, supported by a small increase in basket size and a strong product offering. The company further said that the performance in the rest of Europe positive with revenue growth of 41 percent to 123.7 million pounds (158.7 million dollars). Gross margin in the region declined from 57.9 percent to 57.8 percent. In the USA, the company saw revenue increase by 83 percent, while gross margin declined from 61.9 percent to 59.3 percent. Rest of world growth was 17 percent, while gross margin declined from 55.7 percent to 55.3 percent.
Active customer numbers in the last 12 months increased by 34 percent to 17.4 million, with a 10 percent increase in the number of items per basket, particularly in overseas markets.