Boohoo boosted by strong sales uplift
Online fashion retail group Boohoo has increased its half year sales by 20% to £975.9 million after doubling its share in key markets.
However, adjusted pre-tax profit dropped by the same percentage to £63.8 million as profitability was impacted by a range of cost headwinds relating to the Covid-19 pandemic and its investment in newly acquired brands.
In addition, its second quarter performance was affected by UK returns rates coming back to pre-pandemic levels and physical stores reopening. Trading also felt the effects of Covid-19 related disruption across the group’s key international markets.
Despite this, Boohoo said it had made significant progress in the period as it invested in its brands, infrastructure and platform to support future growth.
John Lyttle, Boohoo group chief executive, said: “Looking back over the last 18 months the group has delivered an excellent operational and robust financial performance, and that is a testament to all who have helped deliver this. We are delighted to have doubled our market share in key markets such as the UK and US, have significantly expanded our target addressable market through selective acquisitions and are excited about the global potential for all of our brands.”
During the period, Boohoo relaunched its recently acquired Debenhams brand as a digital department store and integrated and relaunched the Dorothy Perkins, Wallis and Burton brands.
Looking ahead, Lyttle added: “Entering the second half of the year, the group is well-positioned to accelerate its growth and our confidence in the group’s medium term targets remain unchanged. We will continue to invest across our platform, people and technology as we look to further cement our position as a leader in global fashion ecommerce.”
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