The group has performed exceptionally well during the year. Revenues have increased across all brands in all regions. PrettyLittleThing continues to perform exceptionally well, with a growth rate of 107 per cent. Market share is increasing, driven by the customer proposition of great fashion at unbeatable prices, supported by an engaging social media presence and successful celebrity endorsements. Gross margins have improved as a result of stronger sell through, tighter control on stock cover and refinement of the customer proposition. Substantial investments have been completed to secure warehouse capacity for growth and improve the future efficiency of the Burnley warehouse with automation.
At Boohoo, revenue for the year rose to £434.6 million, up 16 per cent on the previous year, with growth in all key focus markets. International growth continues to be strong and is continuing to gain market share in the UK. Gross margin increased by 170 bps to 52.9 per cent, driven by improved stock control and refinement of the customer proposition.
The revenue growth of Nasty has been strong across all territories with a growth rate of 96 per cent, increasing revenue to £47.9 million. In the brand's principal market, the US where the brand originated, growth has been very strong. The next largest market is the UK, where brand awareness has increased substantially and growth has been exceptionally high. Gross margin was 56.7 per cent, a reduction on the previous year but in line with our proposition strategy.
"I am very excited to have joined the boohoo Group at this key stage of its growth, with the group's disruptive and proven business model having delivered yet another excellent set of financial and operational results. In my short time within the business, I am delighted to have been able to meet a number of hugely talented people and have already been able to see many parts of the business. This has confirmed my belief and optimism that the group's investments into its brands and infrastructure have allowed it to develop a scalable multi-brand platform that is well-positioned to disrupt, gain market share and capitalise on what is a truly global opportunity," John Lyttle, CEO, said.
Trading in the first few weeks of the financial year has been encouraging. Group revenue growth for the financial year is expected to be 25 to 30 per cent with an adjusted EBITDA margin of around 10 per cent and capital expenditure in the region of £50 to £60 million.
"Looking beyond the current year, we will continue to make investments across the group as part of our vision to lead the global fashion e-commerce market. Whilst this will require continued investments in people and infrastructure, we believe that the benefits of our multi-brand platform will continue to generate economies of scale, allowing us to target sales growth of 25 per cent per annum, with an adjusted EBITDA margin of around 10 per cent over the medium term," the company said. (RR)
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