United Kingdom : Boohoo 2018 revenue up 32% to £374.1 million

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Boohoo 2018 revenue up 32% to £374.1 million

30
Apr '18

Courtesy: Boohoo

E-commerce marketplace Boohoo has recorded revenue of £374.1 million for financial year 2018, up 32 per cent. The company registered gross margin of 51.2 per cent, driven by planned investments in the customer proposition (retail gross margin 53.4% (2017: 56.1%)). For the reported period, the group revenue was registered at £579.8 million, up 97 per cent.

"The group made great progress during the year, integrating a new company, PrettyLittleThing, and a new brand, Nasty Gal, into the boohoo group. Revenue from boohoo continued to grow strongly, whilst there has been an exceptional performance from PrettyLittleThing, and Nasty Gal exceeded our estimates in its first year. Against a backdrop of difficult trading in the UK clothing sector, the group continued to perform well, gaining market share in the expanding online sector. Our international business showed higher growth rates and we are pleased with its gathering momentum," Mahmud Kamani and Carol Kane, joint CEOs, said.

"Group revenue growth for the next financial year (FY19) is expected to be 35 to 40 per cent with adjusted EBITDA margin between 9 to 10 per cent and capital expenditure of £50 to £60 million. Looking beyond the current year we will continue to lead the market on value, service and proposition in all our key geographies. Whilst this will require a continued investment in people and infrastructure, we believe that the benefits of our investments in marketing and warehouse automation will generate economies of scale to allow us to drive sales growth of at least 25 per cent, whilst maintaining a 10 per cent EBITDA margin," company press release said.

"Our strategy will remain focussed on providing the best fashion at great prices coupled with excellent customer service. To this end we have a plan of continuous investment in systems and technology to ensure we offer an optimal online shopping experience. International expansion will continue as we add more country-specific websites, refine our brands’ customer proposition and raise brand awareness through marketing and social media. Our extended distribution centre, which will have a significant element of automation to drive efficiency savings, is scheduled for operational use in early 2019," concluded Kamani and Kane. (RR)

Fibre2Fashion News Desk – India

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