Boohoo full-year profits rocket but currency headwinds hit overseas sales

In its year to February 28, Boohoo’s sales soared 63% to £109.8m but in the three months to May 31 sales growth slowed 24% to £30.7m as its sales outside of Europe dropped 20%, hit by Australia and currency headwinds. However, although the retailer was hit by tough comparatives, sales soared 128% in the first quarter last year.

Asos was also hit by currency exchange fluctuations which last week forced it to issue a profit warning.

Boohoo said trading was in line with management expectations for the year. UK sales rose 44% and in the rest of Europe they were up 36%.

Over the year, Boohoo gross margin increased 460 basis points to 59.1%. International accounted for 35% of sales. Boohoo launched its first foreign language website in France this year and its second in Spain in its most recent quarter

Boohoo now has 2.3m active customers, up 54% on last year.

Boohoo joint chief executives Mahmud Kamani and Carol Kane said: “The past year has been an exciting one, and we are very proud of the growth we have seen in both our UK and international markets.

“The launch of new product categories, investment in our warehouse and IT infrastructure, and of course the investment and development of our teams all support our future growth. The company is well positioned to benefit from its transformation to becoming a PLC after its successful IPO.

“Looking ahead we are excited about our future growth prospects, delivering new foreign-language websites and introducing additional currency options, as well as further improving our mobile website and customer experience.”