Boohoo profits surge as sales rocket across globe

The online fashion retailer registered a 35% uplift in pre-tax profit to £125m in the year to February 28. Adjusted EBITDA jumped 37% to £174m during the same period. 

Group revenues soared 41% to £1.75bn, buoyed by surging sales in its international markets, which now account for almost half of Boohoo’s total revenues.

The etailer said sales in the UK, which remains its largest market, rose 39% to £945m during the year. That compared with a 65% surge in sales in the US, Boohoo’s fastest growing market, where it raked in £435m. 

Trading restrictions prompted by the coronavirus crisis helped Boohoo grow sales strongly across all of its territories, with revenues in the rest of Europe up 30% and the rest of the world climbing 16%.    

Boohoo, which acquired Debenhams, Dorothy Perkins, Wallis and Burton during the period, said the number of active customers using its websites jumped 28% to 18 million compared with a year ago.

It is opening a third distribution centre in the coming months, while it has also signed a lease on a fourth depot as it eyes further growth.

Boohoo also hailed “significant” progress in its ‘Agenda for Change’ – the programme it launched last summer following allegations of poor and potentially illegal practices by garment manufacturers in some of the Leicester warehouses involved in its supply chain.

The business has already made a host of appointments, including drafting in former Primark executive Andrew Reaney as responsible sourcing director.

This morning, Boohoo revealed the appointment of TalkTalk’s general counsel Tim Morris as a non-executive director to bring “a high level of scrutiny and accountability” to its board.

Boohoo co-founders Mahmud Kamani and Carol Kane said: “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.

“Heading into the new financial year, we are excited about the global opportunities for our brands as we build for the future and invest in enhancing our technology and platform to allow the group to deliver on its growth potential.”

Boohoo boss John Lyttle said the financial year was one of “significant investment” for the group, having splashed out more than £250m on acquisitions.

Lyttle added: “Our newly acquired brands are being re-energised and made relevant for today’s consumer across a broader market demographic. We are very excited about their potential and are already seeing the early rewards from their growth.

“We have also invested in improving the oversight and transparency of our supply chain and we are committed to embedding positive change through our ambitious Up Front sustainability strategy.

“As we build for the future, we continue to invest across our platform, people and technology to further cement our position as a leader in global fashion ecommerce.”