No tears for Boohoo as profits and revenues soar
Boohoo has reported a surge in profits and revenues for the full year as the fashion etailer woos even more customers worldwide.
But clearly investors were hoping for more – Boohoo's share price fell 3.7 per cent on the open.
The figures
Revenues were up 40 per cent in the year to 29 February, climbing to £195m, while gross profits soared 33 per cent to £112m.
Operating profit was up 42 per cent to £15m while adjusted EBITDA jumped 32 per cent to £18.7m. Profit before tax was up 42 per cent.
Boohoo grew its active customer base by 34 per cent to more than four million people.
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Why it's interesting
It hasn't been plain sailing for the etailer, which issued a profits warning last January. But since then it has been on form pretty much consistently with first half figures paving the way for today's bumper growth.
The business is growing strongly in the UK and other more established markets, but is also performing well internationally, combining to generate growth ahead of expectations.
Boohoo launched new apps in UK, US and Australia and introducing more flexible delivery and return options and later next day delivery cut off times, helping to retain existing customers and win over new ones. Its investment in a new warehouse has also helped it fulfil more orders for its growing consumer base.
What Boohoo said
Mahmud Kamani and Carol Kane, joint chief executives, said: "By refining the mix of promotional and marketing expenditure in each of our key markets, we have achieved growth ahead of our plans.
"The expansion of our product range has been very well received by our customers and contributed to the strong growth, with the new petite range performing very well along with plus-size which was introduced last year and continues to grow rapidly."
The pair added: "We have had an encouraging start to the 2017 financial year and we currently anticipate sales growth of around 25 per cent for the financial year, in line with current market expectations.
"We will continue to look at opportunities to invest in incremental growth, which may impact margins on a short term basis, although we will look to maintain EBITDA margins at similar levels to the financial year just ended (in line with current market expectations)."
In short
No tears for Boohoo.