Retailer Results / Boohoo

28/09/2016

Boohoo

Trading Update
Trading update for the six months ended 31 August 2016

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08/06/2016

Boohoo

Trading Update
Trading update for the 3 months ended 31 May 2016

Highlights

• Revenue up 41 per cent (42 per cent CER)
• Strong UK performance supported by third party sales
• Retail gross margin 57.6 per cent, down 300 bps on prior year, driven by planned investments in price and customer proposition
• Marketing expenditure reduced as a percentage of sales, offsetting retail margin decline
• Overall gross margin 56 per cent
• 4.2 million active customers, up 30 per cent on prior year
• £61m cash on balance sheet

Summary

Despite choppy conditions across the clothing and footwear sector in recent months, boohoo continued to deliver solid results with revenues up 42 per cent in the UK with strong performance in the rest of Europe (+40 per cent) and the rest of the World (+37 per cent).

Mahmud Kamani and Carol Kane, joint CEOs, commented: "We are encouraged by our performance in the first quarter, with revenue growth in all geographic regions and slightly ahead of our expectations. Our international business continues to gather momentum and accounts for 36 per cent of revenue.

"Profitability has improved as marketing expenditure, as a percentage of revenue, has been reduced, in line with our strategy of improving the customer proposition to build customer lifetime value.

"We continue to broaden our product range, increase our fashion appeal and offer incredible prices. Active customer numbers, order frequency, basket size and conversion continue to climb.

"Our warehouse expansion programme continues with the fit-out of three additional mezzanine floors nearing completion and planning is underway for a new building on the adjacent site to meet our future capacity requirements.

"We now expect sales growth for the financial year of between 25 per cent and 30 per cent. We expect EBITDA margins in line with last year although we will look at opportunities to drive incremental growth by investing in the customer proposition and our international markets. We continue to execute on our strategy and refine our ecommerce platform to deliver a market-leading shopping experience for fashionable product at incredible prices."


26/04/2016

Boohoo

Full Year Results
Preliminary results for the year ended 29 February 2016

Highlights

• Revenue up 40 per cent (42 per cent Constant Exchange Rate)
• UK up 38 per cent, rest of Europe up 25 per cent (35 per cent CER), rest of world up 56 per cent (63 per cent CER)
• 33 per cent of revenue generated outside the UK
• Gross margin 57.8 per cent (retail gross margin 58.8 per cent)
• Adjusted EBITDA £18.7 million, up 32 per cent
• Strong balance sheet with cash of £58.3 million and no debt

Summary

Strong figures were released by boohoo this morning with sales revenue for the year increasing to £195.4 million, up 40 per cent (42 per cent CER) on the previous year.

Growth in the UK, the largest market, was 38 per cent, with revenue reaching £130.1 million.

Revenue growth in the rest of Europe was 25 per cent (35 per cent CER), impacted by the weak euro. Rest of the world revenue growth of 56 per cent (63 per cent CER) was strong, driven by strong performances in the Australian and US markets. The proportion of international revenues has grown from 32.5 per cent to 33.4 per cent of total revenue, despite the adverse exchange rates.


Mahmud Kamani and Carol Kane, joint CEOs, commented: "We are pleased to report a year of strong revenue growth across all geographic regions. Active customer numbers, order frequency and conversion have all increased on last year as we continue to invest in building customer lifetime value. By refining the mix of promotional and marketing expenditure in each of our key markets, we have achieved growth ahead of our plans.

"The expansion of our product range has been very well received by our customers and contributed to the strong growth, with the new petite range performing very well along with plus-size which was introduced last year and continues to grow rapidly.

"We have enhanced the mobile experience through new apps in UK, USA and Australia as well as introducing more flexible delivery and return options and later next day delivery cut off times.

"We have had an encouraging start to the 2017 financial year and we currently anticipate sales growth of c.25 per cent for the financial year, in line with current market expectations. We will continue to look at opportunities to invest in incremental growth, which may impact margins on a short term basis, although we will look to maintain EBITDA margins at similar levels to the financial year just ended (in line with current market expectations)."


12/01/2016

Boohoo

Trading Update
Four months to 31 December 2015

Highlights

• Revenue up 45 per cent (49 per cent Constant exchange rate - CER)
• UK up 45 per cent
o Rest of Europe up 33 per cent (44 per cent CER)
o Rest of world up 52 per cent (63 per cent CER)

• Retail gross margin 57.0 per cent, down 290bps on prior year driven by planned investments in price and customer proposition: marketing expenditure reduced as a percentage of sales, offsetting retail margin decline
• Overall gross margin 55.7 per cent reflecting growth in third party sales
• 3.9m active customers, up 33 per cent on prior year
• 58.7m cash on balance sheet

Summary

Strong figures were released by BooHoo this morning with sales up 45 per cent in the four months to 31 December. International sales also grew by an impressive 52 per cent although gross margins were down 290bbps.

Active customers, those who had shopped in the last 12 months, were also up 33 per cent year on year, continuing the positive momentum earlier in the year.

Boohoo are certainly one to watch.

Mahmud Kamani and Carol Kane, joint CEOs, commented: "Trading in the four months to 31 December 2015 has been very encouraging across all regions, with overall revenue growth of 45 per cent (49 per cent CER). We have continued to optimise the mix of promotional and marketing spend to drive strong retail growth, reducing the proportion of marketing expenditure, offsetting the 290bps decline in retail gross margin, which includes the adverse impact of exchange rate movements. Gross margin has also been impacted by 130bps due to the growth in third party sales.

“Our investments in the customer proposition have resulted in higher conversion rates, increased order frequency and lower customer acquisition costs. Operational successes include the new warehouse extension entering into full service, giving us the capacity required for business expansion, and the new UK app, which has improved the overall shopping experience.

"We remain confident of trading in the remaining two months of the financial year and now expect revenue growth for the full year to be marginally above previous guidance of 30 per cent to 35 per cent. We are trading in line with current market expectations for EBITDA as we continue to invest in driving growth and building market share across our key markets."


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