// Boohoo full year revenues surges 41% to £1.74bn as it benefited from the online shopping boom during lockdown
// Meanwhile pre-tax profits lifted by 35% to £124.7m as it was boosted by the sales increase
// In addition to the Covid pandemic, Boohoo endured a garment factory scandal and went on an acquisition spree
Boohoo Group has said it is seeing “early rewards” after snapping up Debenhams and three Arcadia brands in rescue deals as it unveiled strong trading amid a tumultuous year.
The online fashion giant reported a 41 per cent surge in revenues as it benefited from the online shopping boom during various lockdowns around the world due to the Covid-19 pandemic.
The firm said revenues jumped to £1.74 billion in the year to February 28 compared to £1.23 billion the previous financial year.
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It told shareholders this morning that pre-tax profits lifted by 35 per cent year-on-year to £124.7 million as it was boosted by the sales increase.
Boohoo Group’s adjusted EBITDA also jumped 37 per cent year-on-year to £173.6 million.
The pandemic allowed the online retail giant to capitalise on the online shopping boom across all of its territories due to various lockdowns and stay-at-home orders.
In its core UK market increased 39 per cent to £945.1m during the year, while in the US it skyrocketed by 65 per cent to £435.1 million – making it its fastest growing market.
Meanwhile, revenues in the rest of Europe was 30 per cent, and sales from the rest of the world grew 16 per cent year-on-year.
In addition to the pandemic, last year saw Boohoo Group dogged by a supply chain scandal regarding labour abuses and poor working conditions at its Leicester factories. It also went on an acquisition spree.
The group said its trading performance was helped by the “successful integration” of the Oasis and Warehouse brands it bought out of administration last year.
Earlier this year, Boohoo Group also snapped up the Debenhams and former Arcadia Group brands Dorothy Perkins, Burton and Wallis after their owners tumbled into administration.
In addition to the flagship Boohoo, the group already owns PrettyLittleThing, Nasty Gal, MissPap, Karen Millen and Coast.
“Our newly acquired brands are being re-energised and made relevant for today’s consumer across a broader market demographic,” Boohoo Group chief executive John Lyttle said.
“We are very excited about their potential and are already seeing the early rewards from their growth.”
Boohoo Group said it expected to post 25 per cent sales growth for the current year, with five per cent of this from the recently acquired brands.
Boohoo said trading in the first weeks of the financial year has been “encouraging” although it cautioned that the outlook remains uncertain and its expects the recent benefits from reduced returns to begin to unwind.
It said it that while it saw benefits to demand from lockdown measures, the pandemic hit core categories such as dresses and going-out clothing, although it hopes these will rebound in coming months.
Regarding the supply chain scandal, Boohoo Group said it has made progress in its Agenda for Change programme to improve its corporate governance.
In a joint statement, co-founders Mahmud Kamani and Carol Kane said: “Over the last year the group has made great progress, delivering another set of record results despite the challenges posed by the Covid-19 pandemic.
“We have made significant progress on our Agenda for Change programme, with greater oversight of our supply chain, stronger governance and more transparency.
“We are embedding a new way of working and improving the sustainability of the group for the benefit of all stakeholders.”
with PA Wires