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Boohoo surges as sales nearly double, PrettyLittleThing stands out
(WebFG News) - Full-year sales at Boohoo.com nearly doubled and pre-tax profit rose 40% as the online fashion retailer hailed an "exceptional" performance from PrettyLittleThing and a strong start to the current financial year.
In the year ended 28 February 2018, revenue increased 97% to £579.8m, while pre-tax profit came in at £43.3m versus £30.9m the year before. Adjusted earnings before interest, tax depreciation and amortisation were up 61% to £56.9m and net cash at year end stood at £133m versus £58.4m in 2017.
Revenue at Boohoo was up 32% to £374.1m, while Nasty Gal's revenues were £24.4m since the start-up in 2017, but it was PrettyLittleThing that stood out, with revenue up a whopping 228% to £181.3m and customer numbers 128% higher than the previous year.
UK revenue was up 95% in the year, while revenue in the rest of Europe was 91% higher and the US and Rest of the World saw increases of 129% and 74%, respectively.
Joint chief executive officers Mahmud Kamani and Carol Kane said: "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."
The fast fashion retailer said PrettyLittleThing will move into its own warehouse in the first half of the FY19 financial year, bringing incremental sales capacity in addition to that in its Burnley operations, which will help underpin its infrastructure needs and add further operational flexibility for the group.
Boohoo said trading in the first few weeks of the 2019 financial year has made a strong start and group revenue growth for the next financial year is expected to be 35% to 40%, with adjusted EBITDA margin between 9% to 10% and capital expenditure of £50m to £60m.
At 1000 BST, the shares were up 12.6% to 173.80p.