Boohoo sales smash £660m but warns on Brexit costs

Boohoo John Lyttle
Boohoo increased in sales year-on-year across all regions
// Boohoo sales up 40% year-on-year to £660.8m in the 4 months to December 31
// UK sales accounted for £357.2m of total sales, and were also up 40% year-on-year
// In the 10 months to December 31, revenue reached £1.47bn, a 42% increase on the same period last year

Boohoo has seen its sales rise by 40 per cent year-on-year to £660.8 million in the four months to December 31, as customer spend shifted online.

The fast fashion online retailer now expects full sales growth for the full financial year to February 28 to be 36 per cent to 38 per cent, up from previous guidance of 28 per cent to 32 per cent.

UK sales accounted for £357.2 million of the total sales, and were also up 40 per cent year-on-year.

READ MORE: Boohoo defends supply chain after investigation into working conditions at Pakistani factory

Boohoo increased in sales year-on-year across all regions, including a 52 per cent boost in the US, and a 30 per cent increase in Europe.

Gross margin for the period was 53 per cent, down 50 basis points on 2019.

Regarding Brexit, the group has implemented operational systems designed to minimise the impact of Brexit on its customer proposition in Europe.

However, Boohoo said it expects “a small cost headwind, predominantly from higher distribution and administrative costs, which the group will seek to mitigate where possible”.

In the ten months to December 31, revenue reached £1.47 billion, a 42 per cent increase on the same period last year.

Since purchasing Oasis and Warehouse out of administration in June 2020, Boohoo has relaunched them as online only on its own platform.

The fashion group intends to finish work on an extended warehouse capacity in April, creating 1000 jobs, to service Oasis and Warehouse, alongside its other brands.

“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,” Boohoo 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.

“The group is in an excellent position entering 2021, which we expect to be another year of progress towards our goal of leading the fashion ecommerce market globally.”

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