Boohoo campaign. Boohoo.
British online fashion retailer Boohoo reported a 37 percent increase in core earnings for the year on Wednesday, benefiting from the boom in digital shopping during the Covid-19 pandemic.
The group, which sells apparel, shoes, accessories and beauty products to 16- to 40-year-olds, posted adjusted earnings before interest, tax, depreciation and amortization (EBITDA) of £ 173.6 million ($ 241.4 million) for the year ). February 28.
That was more than the analyst average forecast of £ 171.3 million and more than the £ 126.6 million for the 2019-2020 fiscal year.
Unlike rivals who rely on stores to close for several months during the coronavirus shutdown, Boohoo could trade anywhere.
Publicity about shortcomings in Boohoo’s supply chain did not appear to slow sales as sales increased 41 percent to £ 1.75 billion.
In September, Boohoo accepted all the recommendations of an independent investigation that found major shortcomings in its supply chain in England following allegations made by newspapers about working conditions and low wages at factories in the Leicester area.
In March, the group unveiled major consolidation in its supplier base as it released a full list of UK manufacturers to deliver on a commitment to transparency.
In January Boohoo bought the Debenhams brand from records for £ 55 million and in February the brand bought Dorothy Perkins, Wallis and Burton for £ 25.2 million from Arcadia’s managers.
Boohoo forecasts revenue growth for the year 2021-2022 of about 25 percent, with the newly acquired brands expected to deliver about five percentage points of this growth.
It said trading was “encouraging” in the early weeks of the new financial year.
But it warned that the economic outlook remained uncertain and expected the benefits of lower revenues over the past 12 months to start to weaken this year, while still facing significantly higher transportation and freight costs.
By James Davey; editors: Kate Holton and Edmund Blair.