TIDMBOO
RNS Number : 1935N
boohoo group plc
19 January 2023
19 January 2023
boohoo group plc - trading statement for the four months to 31
December 2022
("boohoo" or "the Group")
Four months to 31 December
GBP million FY23 FY22 Change on FY22 CER(1) Change on
FY20
------ ------ ------------------------------ ------- ----------
Group total
revenue 637.7 714.5 -11% -13% +35%
------ ------ ------------------------------ ------- ----------
Revenue by region
UK 400.8 451.0 -11% -11% +57%
ROE(2) 73.5 79.9 -8% -11% +6%
USA 128.9 145.8 -12% -17% +17%
ROW(3) 34.5 37.8 -9% -15% -9%
------ ------ ------------------------------ ------- ----------
(1) CER designates Constant Exchange Rate translation of foreign
currency revenue. (2) ROE is rest of Europe. (3) ROW is rest of
world.
Financial and operational highlights
-- In line with previous guidance, group revenue declined 11%.
UK revenues declined 11% year on year, versus a strong prior year
comparative. International revenues declined 10% year on year, with
extended delivery times compared to pre-pandemic levels continuing
to affect the proposition
-- Gross margin for the period of 49.7% is broadly in line with
expectations, and expected to improve year on year in P4 with a
reduction in markdown activity anticipated compared to the same
period last year
-- Inventory continues to be tightly controlled, with improving
speed and flexibility within our global supply base and inventory
significantly reduced, down 27% year on year
-- Improvements in cash generation through tighter inventory
management, cost control and an improved working capital cycle
-- Significant liquidity headroom with more than GBP300 million
of gross cash at the end of December, with net debt expected to be
less than 1x Adjusted EBITDA at the end of the financial year
-- Successful launch of automation in the Group's distribution
centre in Sheffield, with improvements to efficiency ramping up
over the coming months in line with expectations
-- Progress continues to be made with our US distribution
centre, driving a step change in our customer proposition, expected
to launch with a phased approach over 2023 and early 2024
-- Overheads continue to be managed tightly against a
challenging economic backdrop, including a reduction in capacity in
the UK distribution network, with action across the Group focusing
on reducing costs.
Guidance and outlook
For the year ending 28 February 2023, adjusted EBITDA is
expected to be in line with market expectations. Revenues are
expected to decline approximately 12% over the financial year, with
an adjusted EBITDA margin of approximately 3.5%.
With recent positive signs in global supply chains, we expect to
see some easing of disruption along with some relief to freight
rates. Combined with the actions being undertaken on costs across
the Group, it is expected that overall cost growth begins to
moderate as the year progresses along with an improved cost
inflation outlook exiting the year ahead. The Group's focus
continues to be on optimising its operations and investing
selectively in key strategic projects that best position it to
rebound strongly as conditions normalise.
John Lyttle, CEO, commented:
"Performance in the period is in line with expectations and
reflects the normalisation of the channel shift online over the
last twelve months, but demonstrates the significant market share
gains the Group has made over the last three years. Looking ahead,
whilst the demand outlook is uncertain due to macro-economic
factors, cost inflation is expected to begin to moderate in the
second half of the year.
We have reduced inventory by 27% year on year and with this
focus on careful inventory management, strong cost control and cash
management, we will continue to drive operational and cost
efficiency across the business. The Group has continued to invest
in key strategic priorities that will enable future growth, and the
progress made gives us confidence that as macro-economic headwinds
ease it will be well-positioned to rebound strongly."
Notice of full year results
The Group intends to publish its Full Year results for the 12
months ended 28 February 2023 in May 2023.
Enquiries
boohoo group plc
Shaun McCabe, 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
Mark Mochalski, Investor Relations Tel: +44 (0)20 3239
6289
Zeus Capital - Nominated adviser and joint
broker
Andrew Jones / James Edis / Dan Bate Tel: +44 (0)161 831
1512
Benjamin Robertson Tel: +44 (0)20 3829
5000
Jefferies - Joint broker
Philip Noblet Tel: +44 (0)20 7029
8000
Ed Matthews Tel: +44 (0)20 7029
8000
Buchanan - Financial PR adviser boohoo@buchanan.uk.com
Richard Oldworth / Toto Berger / Verity Parker Tel: +44 (0)20 7466
5000
About boohoo group plc
"Leading the fashion eCommerce market"
Founded in Manchester in 2006, boohoo is an inclusive and
innovative global brand targeting young, value-orientated
customers, pushing boundaries to bring its customers up-to-date and
inspirational fashion, 24/7.
In 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, in August 2019 the Karen Millen and Coast brands
and in June 2020 the Warehouse and Oasis brands, all complementary
to the group's scalable, multi-brand platform. In January 2021, the
group acquired the intellectual property assets of Debenhams, with
the goal of transforming a leading UK fashion and beauty retailer
into a digital department store and marketplace through a new
capital-light and low-risk operating model. In February 2021, the
group acquired the intellectual property assets of UK brands
Dorothy Perkins, Wallis and Burton. As at 31 August 2022, the
boohoo group had 19 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 10 months to 31 December 2022
(FY23)
GBPm 4m to 31 December 10m to 31 December
--------------------------------
FY23 FY22 yoy yoy FY23 FY22 yoy yoy
% % CER % %
CER
------ ------ ----- ------- -------- -------- ----- -----
Total 637.7 714.5 -11% -13% 1,520.1 1,690.4 -10% -12%
------ ------ ----- ------- -------- -------- ----- -----
Revenue by region
-------- -------- ----- -----
UK 400.8 451.0 -11% -11% 945.4 1,020.5 -7% -7%
------ ------ ----- ------- -------- -------- ----- -----
ROE 73.5 79.9 -8% -11% 175.6 184.3 -5% -7%
------ ------ ----- ------- -------- -------- ----- -----
USA 128.9 145.8 -12% -17% 306.3 396.2 -23% -27%
------ ------ ----- ------- -------- -------- ----- -----
ROW 34.5 37.8 -9% -15% 92.8 89.4 +4% -2%
------ ------ ----- ------- -------- -------- ----- -----
GBPm 3m to 31 May 3m to 31 August 6m to 31 August
----------------------------
FY23 FY22 yoy yoy FY23 FY22 yoy yoy FY23 FY22 yoy yoy
% % CER % % % %
CER CER
------ ------ ----- ------- ------ ------ ----- ----- ------ ------ ----- -----
Total 445.7 486.1 -8% -10% 436.7 489.8 -11% -13% 882.4 975.9 -10% -11%
------ ------ ----- ------- ------ ------ ----- ----- ------ ------ ----- -----
Revenue by region
------ ------ ----- ----- ------ ------ -----
UK 272.1 274.5 -1% -1% 272.5 294.9 -8% -8% 544.6 569.4 -4% -4%
------ ------ ----- ------- ------ ------ ----- ----- ------ ------ -----
ROE 49.6 54.4 -9% -10% 52.5 50.0 +5% +2% 102.1 104.4 -2% -4%
------ ------ ----- ------- ------ ------ ----- ----- ------ ------ ----- -----
USA 95.0 131.9 -28% -31% 82.4 118.6 -31% -35% 177.4 250.5 -29% -33%
------ ------ ----- ------- ------ ------ ----- ----- ------ ------ ----- -----
ROW 29.0 25.2 +15% +10% 29.3 26.3 +12% +5% 58.3 51.5 +14% +8%
------ ------ ----- ------- ------ ------ ----- ----- ------ ------ ----- -----
Revenue by period for the year to 28 February 2022 (FY22)
GBPm 4m to 31 December 2m to 28 February 12m to 28 February
----------------------------
FY22 FY21 yoy yoy FY22 FY21 yoy yoy FY22 FY21 yoy yoy
% % CER % % % %
CER CER
------ ------ ----- ------- ------ ------ ----- ----- -------- -------- ----- -----
Total 714.5 660.8 8% 9% 292.5 268.0 9% 10% 1,982.8 1,745.3 14% 15%
------ ------ ----- ------- ------ ------ ----- ----- -------- -------- ----- -----
Revenue by region
------ ------ ----- ----- -------- -------- -----
UK 451.0 356.7 26% 26% 182.3 158.3 15% 15% 1,202.8 945.1 27% 27%
------ ------ ----- ------- ------ ------ ----- ----- -------- -------- -----
ROE 79.9 90.3 -11% -9% 34.9 30.5 14% 14% 219.2 244.7 -10% -8%
------ ------ ----- ------- ------ ------ ----- ----- -------- -------- ----- -----
USA 145.8 168.2 -13% -13% 55.4 64.6 -14% -12% 451.6 435.1 4% 6%
------ ------ ----- ------- ------ ------ ----- ----- -------- -------- ----- -----
ROW 37.8 45.6 -17% -16% 19.8 14.6 36% 36% 109.2 120.4 -10% -8%
------ ------ ----- ------- ------ ------ ----- ----- -------- -------- ----- -----
GBPm 3m to 31 May 3m to 31 August 6m to 31 August
----------------------------
FY22 FY21 yoy yoy FY22 FY21 yoy yoy FY22 FY21 yoy yoy
% % CER % % % %
CER CER
------ ------ ----- ------- ------ ------ ----- ----- ------ ------ ----- -----
Total 486.1 367.8 32% 34% 489.8 448.7 9% 10% 975.9 816.5 20% 21%
------ ------ ----- ------- ------ ------ ----- ----- ------ ------ ----- -----
Revenue by region
------ ------ ----- ----- ------ ------ -----
UK 274.5 183.0 50% 49% 294.9 247.2 19% 19% 569.4 430.2 32% 32%
------ ------ ----- ------- ------ ------ ----- ----- ------ ------ -----
ROE 54.4 63.4 -14% -10% 50.0 60.3 -17% -14% 104.4 123.7 -16% -12%
------ ------ ----- ------- ------ ------ ----- ----- ------ ------ ----- -----
USA 131.9 92.0 43% 48% 118.6 110.2 8% 10% 250.5 202.2 24% 28%
------ ------ ----- ------- ------ ------ ----- ----- ------ ------ ----- -----
ROW 25.2 29.4 -15% -11% 26.3 31.0 -15% -13% 51.5 60.4 -15% -12%
------ ------ ----- ------- ------ ------ ----- ----- ------ ------ ----- -----
CER in this appendix for the year ended 28 February 2022 is
calculated using exchange rates prevailing during the year ending
28 February 2023. Nomenclature: ROE - rest of Europe; ROW - rest of
world; yoy - year-on-year; CER - constant exchange rate
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