Boohoo sales rose to £1.75bn last year
Boohoo (LON:BOO), the online fashion brand, has confirmed its sales and profits jumped up last year after the company concentrated on its loungewear and activewear ranges while the coronavirus pandemic was going on.
The FTSE 250 company revealed on Wednesday morning that its revenue rose by 41% during the year ending on 28 February, as sales rose by just over £0.5bn to £1.75bn.
Pre-tax profit soared too, up 35% £124.7m over the same time period.
Earnings per share increased 36 per cent from 5.35p to 7.25p.
“Boohoo has strutted ahead of flailing high street rivals showing that its bang on trend when it comes to the way fashion followers want to shop and the styles they want to buy,” said Susannah Streeter, senior investment and markets analyst, Hargreaves Lansdown. “Looser stay at home styles like sports and loungewear added extra comfort as the fit was easier to get right, so people sent fewer items back. With the returns bugbear retreating, that helped push up gross margins to 54.2%.”
Superstar sales have meant Boohoo has piled up the cash, with its operating cash flow hitting more than £200 million, compared to £127 million in 2020.
Boohoo’s deep pockets already sent the company on a spending spree rifling through Arcadia’s bargain bins to grab a clutch of brands including Dorothy Perkins. It’s also grabbed the Debenhams online store, with the aim of turning a company, which began as a market stall, into an international apparel marketplace. “This plan is on track with revenue growth for international up 44% over the year, now accounting for a bigger slice of the overall sales pie,” said Streeter.
“Boohoo is now a fashion powerhouse, and investment in scaling the platform is expected to keep paying off, with even higher margins expected in the second half of the year. But the catwalk isn’t completely clear, with hurdles of uncertainty ahead.”
