TIDMBOO
RNS Number : 2111Q
boohoo group plc
17 June 2020
FOR IMMEDIATE RELEASE 17 JUNE 2020
The information contained within this announcement is deemed by
the company to constitute inside information stipulated under the
Market Abuse Regulation (EU) No. 596/2014. Upon the publication of
this announcement via the Regulatory Information Service, this
inside information is now considered to be in the public
domain.
boohoo group plc - trading statement for the three months ended
31 May 2020
("boohoo" or "the Group")
Strong trading performance and acquisition
Three months to 31 May
GBP million FY21 FY20 Increase CER(1)
------ ------ --------- -------
Group total revenue 367.8 254.3 45% 45%
------ ------ --------- -------
Revenue by region
UK 183.0 140.6 30% 30%
ROE(2) 63.4 38.2 66% 65%
USA 92.0 51.3 79% 83%
ROW(3) 29.4 24.2 22% 22%
------ ------ --------- -------
(1) CER designates Constant Exchange Rate translation of foreign
currency revenue. (2) ROE is rest of Europe. (3) ROW is rest of
world.
In these unprecedented and difficult times we are pleased to
report that our first quarter trading has been very strong. This
has been achieved during a global pandemic where our first priority
has been, and will continue to be, to ensure the health, safety and
wellbeing of all our colleagues, customers and suppliers around the
world.
The results demonstrate the determination and flexibility of our
staff, and our capability and preparedness to deploy different ways
of working to capture and process demand utilising our flexible
supply chain. At the same time the Group has been able to provide
extensive support for colleagues who have been required to
self-isolate, including full pay. Wherever possible colleagues have
been working from home.
The Group welcomes the UK government's financial support
packages that have been made available to businesses, but in light
of the very strong trading performance we have not taken advantage
of the available support.
Trading and operational performance
Revenues in our first quarter totalled GBP367.8m, up 45% year on
year, with strong underlying growth across boohoo, PLT and Nasty
Gal. Our newest brands (MissPap, Karen Millen and Coast) continue
to trade strongly having successfully integrated onto the Group's
scalable platform last year.
The Group entered the year with sustained momentum from a strong
finish to its previous financial year. Trading in the middle of
March through to early April was mixed, as a result of the impact
of the COVID-19 pandemic, initially with a marked decrease in
year-on-year growth. Performance across all of our brands and
geographies improved throughout April, with a robust performance
delivered in May.
Despite the uncertain backdrop, we have delivered a strong gross
margin performance, up 60 basis points year on year to 55.6%, with
our test and repeat model allowing our teams to back winning
categories and trends that have emerged through this period. Areas
such as loungewear and athleisure have performed well as customer
buying habits adapted to a stay at home lifestyle, with our
marketing strategy and content being pivoted to reflect this change
and we have seen strong levels of engagement in response.
Our service proposition has held up relatively well. Our
fantastic warehouse teams have adapted to completely new ways of
working to ensure that they abide by all the social distancing
procedures that we have in place, and we continue to engage with
our carrier partners to ensure as seamless a customer proposition
as possible.
Financing and acquisitions update
Today, the Group is pleased to announce the acquisition of the
online businesses and all associated intellectual property of two
brands, Oasis and Warehouse, for GBP5.25m in cash from Hilco
Capital Limited. Oasis and Warehouse are two well-established
brands in the UK targeting fashion forward shoppers and are a
complementary addition to our portfolio of brands.
In line with previous acquisitions, the Group will, in the
coming months, integrate Oasis and Warehouse onto its platform,
allowing both brands to benefit from the Group's insight,
infrastructure, supply chain and operating model. In their most
recent financial year ending February 2020, unaudited management
information shows that Oasis and Warehouse generated direct online
revenues of GBP46.8 million in aggregate.
On 28 May, we successfully completed the purchase of the
remaining 34% minority interest in prettylittlething.com Limited
("PLT"). The Group continues to expect this acquisition to be
significantly earnings enhancing, with PLT delivering a strong
trading performance in the period, and the acquisition continues to
represent an important further step towards achieving our vision to
lead the fashion e-commerce market globally.
In addition, on 15 May, the Group raised gross proceeds of
GBP197.7 million from shareholders through a placing in order to
take advantage of numerous M&A opportunities that are likely to
emerge in the global fashion industry over the coming months. The
Group continues to appraise opportunities and will update
shareholders in due course. We finished the quarter with in excess
of GBP350 million of net cash on our balance sheet.
Outlook and Guidance
For the current financial year ending 28 February 2021, the
Group expects to deliver another year of strong profitable growth,
and ahead of market expectations. Revenue growth is anticipated to
be approximately 25% for the current financial year, with an
adjusted EBITDA margin of 9.5% to 10%. This guidance reflects our
expectation for an ongoing period of consumer uncertainty, likely
promotional intensity in markets in which we operate, as well as
continued near-term carriage inflation for some of our overseas
markets. This guidance also reflects ongoing investments into our
more established brands as well as anticipated investments into new
and recently acquired brands through the course of the financial
year.
In the current financial year we will continue to invest into
our infrastructure and operations to support our future growth
ambitions, with capital expenditure expected to be in the region of
GBP60 million to GBP80 million. The strength of our trading and
operational performance in the period further underpins our
confidence in our medium term guidance for 25% sales growth per
annum and a 10% adjusted EBITDA margin, which remains
unchanged.
John Lyttle, boohoo group plc CEO, commented:
"During unprecedented and challenging times, the Group has
delivered a very strong trading and operational performance. I am
proud of how our colleagues and business partners from around the
world have responded to ensure that we can safely bring to our
customers the latest fashions, great value, fantastic prices and
best in class service. Whilst there is a period of uncertainty
within the markets in which we operate, the Group is
well-positioned to continue making progress towards leading the
fashion e-commerce market globally."
Investor and analyst conference call
boohoo group plc will today host a conference call for analysts
and investors at 8.45am (UK time). The dial in details for the call
are as follows:
UK Toll Number: +44 3333000804
UK Toll-Free Number: 08003589473
Participant pin code: 23668690#
For international access numbers, please click here.
-ends-
Enquiries
boohoo group plc
Neil Catto, Chief Financial Officer Tel: +44 (0)161 233
2050
Alistair Davies, Investor Relations Tel: +44 (0)161 233
2050
Clara Melia, Investor Relations Tel: +44 (0)20 3289
5520
Zeus Capital - Nominated adviser and joint
broker
Nick Cowles/Andrew Jones (Corporate Finance) Tel: +44 (0)161 831
1512
John Goold/Benjamin Robertson (Corporate Tel: +44 (0)20 3829
Broking) 5000
Jefferies - Joint broker
Philip Noblet/Max Jones Tel: +44 (0)20 7029
8000
Buchanan - Financial PR adviser boohoo@buchanan.uk.com
Richard Oldworth/ Kim Looringh-van Beeck/Toto Tel: +44 (0)20 7466
Berger 5000
About boohoo group plc
"Leading the fashion eCommerce market"
Founded in Manchester in 2006, boohoo is an inclusive and
innovative brand targeting young, value-orientated customers. Since
2006, boohoo has been pushing boundaries to bring its customers
up-to-date and inspirational fashion, 24/7. boohoo has grown
rapidly in the UK and internationally, expanding its offering with
range extensions into menswear, through boohooMAN.
In early 2017 the group extended its customer offering through
the acquisitions of the vibrant fashion brand PrettyLittleThing,
and free-thinking brand Nasty Gal. In March 2019 the group acquired
the MissPap brand and in August 2019, the Karen Millen and Coast
brands, all complementary to the group's scalable multi-brand
platform. United by a shared customer value proposition, our brands
design, source, market and sell great quality clothes, shoes and
accessories at unbeatable prices. These investment propositions
have helped us grow from a single brand, into a major multi-brand
online retailer, leading the fashion eCommerce market for 16 to
40-year-olds around the world. As at 29 February 2020, the boohoo
group had just under 14 million active customers across all its
brands around the world.
Cautionary Statement
Certain statements included or incorporated by reference within
this announcement may constitute "forward-looking statements" in
respect of the group's operations, performance, prospects and/or
financial condition. Forward-looking statements are sometimes, but
not always, identified by their use of a date in the future or such
words and words of similar meaning as "anticipates", "aims", "due",
"could", "may", "will", "should", "expects", "believes", "intends",
"plans", "potential", "targets", "goal" or "estimates". By their
nature, forward-looking statements involve a number of risks,
uncertainties and assumptions and actual results or events may
differ materially from those expressed or implied by those
statements. Accordingly, no assurance can be given that any
particular expectation will be met and reliance should not be
placed on any forward-looking statement. Additionally,
forward-looking statements regarding past trends or activities
should not be taken as a representation that such trends or
activities will continue in the future. No responsibility or
obligation is accepted to update or revise any forward-looking
statement resulting from new information, future events or
otherwise. Nothing in this announcement should be construed as a
profit forecast. This announcement does not constitute or form part
of any offer or invitation to sell, or any solicitation of any
offer to purchase any shares or other securities in the Company,
nor shall it or any part of it or the fact of its distribution form
the basis of, or be relied on in connection with, any contract or
commitment or investment decisions relating thereto, nor does it
constitute a recommendation regarding the shares or other
securities of the Company. Past performance cannot be relied upon
as a guide to future performance and persons needing advice should
consult an independent financial adviser. Statements in this
announcement reflect the knowledge and information available at the
time of its preparation. Liability arising from anything in this
announcement shall be governed by English law. Nothing in this
announcement shall exclude any liability under applicable laws that
cannot be excluded in accordance with such laws.
Appendix - prior period revenues by region
Revenue by period for the year to 28 February 2021 (FY21)
GBPm 3m to 31 May
FY21 FY20 yoy yoy
% % CER
------ ------ ---- -------
Total 367.8 254.3 45% 45%
------ ------ ---- -------
Revenue by Region
UK 183.0 140.6 30% 30%
------ ------ ---- -------
ROE 63.4 38.2 66% 65%
------ ------ ---- -------
USA 92.0 51.3 79% 83%
------ ------ ---- -------
ROW 29.4 24.2 22% 22%
------ ------ ---- -------
Revenue by period for the year to 29 February 2020 (FY20)
GBPm 4m to 31 December 2m to 28/29 February 12m to 28/29 February
---------------------------
FY20 FY19 yoy yoy FY20 FY19 yoy yoy FY20 FY19 yoy yoy
% % CER % % % %
CER CER
------ ------ ---- ------- ------ ------ ---- ----- -------- ------ ---- -----
Total 473.7 328.2 44% 44% 196.3 133.4 47% 48% 1,234.9 856.9 44% 44%
------ ------ ---- ------- ------ ------ ---- ----- -------- ------ ---- -----
UK 255.8 180.0 42% 42% 108.5 74.2 46% 46% 679.3 488.2 39% 39%
-----
ROE 69.6 44.4 57% 54% 31.4 19.4 61% 58% 188.4 115.1 64% 62%
------ ------ ---- ------- ------ ------ ---- ----- -------- ------ ---- -----
USA 110.6 70.4 57% 57% 42.3 27.7 53% 62% 263.6 166.3 59% 61%
------ ------ ---- ------- ------ ------ ---- ----- -------- ------ ---- -----
ROW 37.7 33.4 13% 13% 14.1 12.1 17% 14% 103.6 87.3 19% 19%
------ ------ ---- ------- ------ ------ ---- ----- -------- ------ ---- -----
GBPm 3m to 31 May 3m to 31 August 6m to 31 August
---------------------------
FY20 FY19 yoy yoy FY20 FY19 yoy yoy FY20 FY19 yoy yoy
% % CER % % % %
CER CER
------ ------ ---- ------- ------ ------ ---- ----- ------ ------ ---- -----
Total 254.3 183.6 39% 39% 310.5 211.7 47% 47% 564.9 395.3 43% 43%
------ ------ ---- ------- ------ ------ ---- ----- ------ ------ ---- -----
UK 140.6 110.7 27% 27% 174.4 123.3 41% 41% 315.0 234.1 35% 35%
------ ------ ---- ------- ------ ------ ---- ----- ------ ------ -----
ROE 38.2 22.3 72% 71% 49.2 29.0 70% 68% 87.5 51.2 71% 69%
------ ------ ---- ------- ------ ------ ---- ----- ------ ------ ---- -----
USA 51.3 31.4 64% 66% 59.4 36.8 61% 64% 110.7 68.2 62% 65%
------ ------ ---- ------- ------ ------ ---- ----- ------ ------ ---- -----
ROW 24.2 19.2 26% 28% 27.5 22.6 22% 23% 51.7 41.8 24% 25%
------ ------ ---- ------- ------ ------ ---- ----- ------ ------ ---- -----
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END
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