Boohoo reports strong first half sales and profit increase
Online fashion retailer Boohoo has grown its first half sales and profits after it benefited an increase in basket size and from customers returning fewer items during the coronavirus pandemic.
In the six months to 31 August, the owner of the Boohoo, Nasty Gal and Pretty Little Thing retail brands saw its pre-tax profit surge by 51% to £68.1 million. Retail revenues also climbed, rising by 45% to £816.5 million.
The group achieved revenue growth across both its UK and international territories. International revenue now accounts for 47% of group sales compared to 44% in the same period last year.
Boohoo acquired the Oasis and Warehouse brands in the period and also purchased the remaining minority interest in Pretty Little Thing. It also completed a successful £198 million share placing to support future acquisitions.
John Lyttle, Boohoo group chief executive, said: “There are many challenges still ahead due to uncertainties posed by the Covid-19 pandemic, but despite these challenges there are many positives from our activities in the first half. The resilience of our business model and the commitment and flexibility of our colleagues and partners has enabled us to continue to operate our business successfully.”
Boohoo announced in July that Alison Levitt QC would be leading an independent review of its Leicester supply chain following allegations of low pay and unsafe conditions at its suppliers’ factories. Last week, the company said the review had identified a number of failings and recommended that improvements be made to its corporate governance, compliance and monitoring processes.
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