Boohoo posts strong Q1 performance as it acquires Oasis and Warehouse
Boohoo has reported strong trading in its first quarter despite the emergence of the coronavirus pandemic.
Revenues in the three months to 31 May increased by 45% to £367.8 million as the group achieved growth across its Boohoo, Pretty Little Thing and Nasty Gal retail brands.
The group said trading in the middle of March through to early April was mixed due to the impact of Covid-19. However, sales improved from mid-April onwards to enable it to deliver a “robust” performance in May.
Boohoo has also announced that it has acquired the online businesses and intellectual property of Oasis and Warehouse for £5.25 million from Hilco Capital. The group said the businesses would complement its existing portfolio of fashion forward brands.
In the year to February 2020, unaudited management information shows that Oasis and Warehouse generated online revenues of £46.8 million.
Looking ahead, Boohoo said it expects group revenue to grow by around 25% in the current financial year and that its adjusted EBITDA margin will be between 9.5% and 10%. The group said it will continue to invest in its infrastructure and operations to support future growth with capital expenditure expected to be in the region of £60 million to £80 million in the year.
John Lyttle, Boohoo group chief executive, said: “During unprecedented and challenging times, the group has delivered a very strong trading and operational performance. I am proud of how our colleagues and business partners from around the world have responded to ensure that we can safely bring to our customers the latest fashions, great value, fantastic prices and best in class service.
“Whilst there is a period of uncertainty within the markets in which we operate, the group is well-positioned to continue making progress towards leading the fashion ecommerce market globally.”
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