Boohoo full-year profits surge as sales rocket

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Boohoo has unveiled another stellar set of full-year results, as pre-tax profits grew 38% and sales soared.

The online fast-fashion group’s pre-tax profits surged to £59.9m in the 52 weeks to February 28, 2019, while group sales rocketed 48% to £856.9m.

Within the group, PrettyLittleThing led the way, with its sales climbing 107% to £374.4m, while Nasty Gal sales were up 96% to £47.9m, though its gross margin was down. Sales at Boohoo specifically climbed 16% to £434.6m.

Boohoo saw its adjusted EBITDA swell to £84.5m or 9.9% of total revenue, up from £56.9m the previous year.

The fashion etailer also reported strong sales growth across all of its markets, with UK revenues up 37% and international sales up 67%.

In its outlook, Boohoo described trading in the first few weeks of this year as “encouraging” and said its different brands “will continue to generate economies of scale, allowing us to target sales growth of 25% per annum, with an adjusted EBITDA margin of around 10% over the medium term”.

New Boohoo boss John Lyttle said: “I am very excited to have joined the Boohoo Group at this key stage of its growth, with the group’s disruptive and proven business model having delivered yet another excellent set of financial and operational results.

“In my short time within the business, I am delighted to have been able to meet a number of hugely talented people and have already been able to see many parts of the business.

“This has confirmed my belief and optimism that the group’s investments into its brands and infrastructure have allowed it to develop a scalable multi-brand platform that is well positioned to disrupt, gain market share and capitalise on what is a truly global opportunity.”

Separately, Boohoo revealed that former JD Sports chief financial officer Brian Small is to join the board as a non-executive director with immediate effect.

Boohoo executive chair Mahmud Kamani said: “Brian’s background and expertise in the retail industry will be a strong asset. We look forward to benefiting from his extensive knowledge of the sector as we continue to increase our footprint and drive future growth.”

Small said: “I am thrilled to join Boohoo at such an exciting time for the group as its disruptive eCommerce platform continues to achieve scale internationally.”