Boohoo full-year sales jump 14% but high returns impact golden quarter

CBoohoo’s full-year profits have plunged as international sales went backwards during the year.
Boohoo profits have nosedived
// Boohoo sales rose 14% in its full year but slowed to 7% in its final quarter due to higher returns rates
//The online retailer expects profits for the year to be in line with market expectations of £125 million

Boohoo sales rose 14% in its full year to 28 February, however, higher return rates during the Christmas period meant sales growth slowed in its final quarter.

The online retail group expects full year adjusted EBITDA to be in line with market expectations of £125 million.

Before returns, sales were up 26% year on year over its fourth quarter. This higher level of returns, which the retailer said was due to the product mix, is expected to continue into the first half of its 2022/23 financial year.

On a two-year basis, which compares performance to pre-pandemic levels, Boohoo’s sales soared 61% over the full year.

READ MORE: Boohoo opens doors to “Debenhams Beauty” store

The retailer said its UK performance continued to be strong but its international business was hit by longer delivery times for customers as a result of pandemic-related supply chain pressures.

However, Boohoo said it returned to growth in its rest of the world segment in its fourth quarter due to the positive contribution of its wholesale business.

Boohoo group chief executive John Lyttle said: “”The group has delivered strong growth over the last two years, which has translated into significant market share gains.

“We are confident that pandemic-related headwinds are short-term in their nature, and our focus is to ensure the business is well positioned for growth as these headwinds ease.”

Click here to sign up to Retail Gazette‘s free daily email newsletter


Please enter your comment!
Please enter your name here