// Missguided on track to achieve 50% growth in turnover
// The growth is thanks to increased brand awareness
// However, EBITDA for the full financial year is forecast to be below expectations
Missguided has reportedly said it is on track to achieve up to 50 per cent growth in turnover to £300 million by the end of the financial year in March 2021.
The fast fashion retailer said the increase in its forecast was thanks to a rise in its brand awareness, Drapers reported.
However, it warned that its EBITDA for the full financial year is likely to be below expectations due to the increased distribution costs associated with trading during the Covid-19 pandemic.
Missguided said turnover rose eight per cent to £202 million in the year to March 29, 2020, while its EBITDA including exceptional items was at £2.1 million, down from £3.5 million in 2018/19.
However, its operating loss widened from £3.6 million to £5.2 million.
Meanwhile, Missguided’s core ecommerce channel benefitted from increased marketing investment and activity, which boosted its brand awareness in the UK and abroad.
Sales outside the UK grew by 15 per cent to £94.2 million and it now trades in more than 180 countries.
The retailer said it witnessed “strong” revenue growth across its smaller wholesale and franchise channels, while revenue from its retail channel continued to decline as it exited its own store operations.
Online sales dropped in the two weeks prior to the first UK-wide lockdown.
However, this was “almost entirely offset” by a reduction in returns, partly because sales shifted to looser fitting product lines.
Between April and November, sales were up 45 per cent and Missguided witnessed a total of 1.9 million new active customers since the start of its 2020/21 financial year.