Boohoo sales jump by 40%

Online fast-fashion retailer Boohoo experienced revenue growth of 40 per cent, representing to £660 million sales boost, in the last four months of 2020.

The 10 months to the end of the year also saw revenue growth of 42 per cent to £1.47 billion.

Much like fellow online fashion retailer ASOS, which saw sales increase by 23 per cent last year, it seems Boohoo has actually benefitted from coronavirus restrictions which have forced the nation online.

The company said that following the strong peak trading performance, Group revenue growth for the financial year to 28 February 2021 is expected to be 36 to 38 per cent, ahead of its previous guidance of 28 to 32 per cent.

It added that its medium-term guidance remains for 25 per cent sales growth per annum and a 10 per cent adjusted EBITA margin, despite COVID-19 related headwinds for distribution costs, planned gross margin investment, and accelerated discretionary customer acquisition spend.

The retailer said that although it has implemented operational systems to minimise the impact of Brexit on its customer base in Europe, it does however expect a small cost headwind, predominately from higher distribution and administrative costs.

John Lyttle, chief executive of Bohooo said: “I’m delighted with the Group’s performance over the peak trading period. 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."

“Growth has been strong across our multi-brand platform and we have continued to grow our market share across all geographies.

He added: “ I’m pleased to be able to provide a further update on our Agenda for Change programme today, which demonstrates our ongoing commitment to transparency as we invest in our approach to sustainability and our supply chain for the benefit of all of the Group’s stakeholders. 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 e-commerce market globally."

Laura Morroll, senior manager, BearingPoint, commented on Boohoo’s final year results: “Boohoo’s final year results stand in stark contrast to traditional bricks and mortar retailers and are evidence of the polarisation of retail performance through the pandemic.

She added: “By targeting their seven million Instagram followers they have been able to reach and engage with their customers throughout periods of lockdown. Celebrity and influencer posts have played a part in this but so have customers themselves. Connecting through the likes of TikTok to create a sense of community spirit has translated directly to the bottom line at a point in time when many other retailers with store closures have lost all dialogue with their customers.”

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