Boohoo posts full year sales increase despite growth in returns
Online fashion retailer Boohoo has posted net year-on-year sales growth of 7% in its fourth quarter despite trading being impacted by higher return rates due to its product mix.
This meant that net sales rose by 14% year-on-year in the 12 months to 28 February and by 61% on pre-pandemic levels two years ago.
Boohoo said its business in the UK delivered a strong trading performance in the period. However, international sales are continuing to be affected by longer customer delivery times as a result of pandemic-related supply chain pressures. However, the group saw a return to growth in its business in the rest of the world in its fourth quarter following a positive contribution from wholesale.
Boohoo, which owns the Boohoo, Pretty Little Thing and Nasty Gal brands, as well as Debenhams.com, said it expects to report adjusted EBITDA for the financial year to 28 February 2022 of approximately £125 million, which is in line with previous guidance and market expectations.
John Lyttle, Boohoo group chief executive, said: “The group has delivered strong growth over the last two years, which has translated into significant market share gains. We are confident that pandemic-related headwinds are short-term in their nature, and our focus is to ensure the business is well positioned for growth as these headwinds ease.”
