Highlights for the three months ended 31 May 2017 Group
· Revenue £120.1 million, up 106% (2016: £58.2 million)
· Like-for-like(1) revenue growth of 78%
· Gross margin 54.2 % (2016: 56%)
Outlook statement sounds very positive,
As a result of very strong trading momentum in Q1, we now expect Group revenue growth for the full year to February 2018 to be around 60%(5), ahead of previous guidance of revenue growth approaching 50%. We expect Group EBITDA margins to be in line with previous guidance at around 10%."
[(5) Revenue growth from the boohoo brand is expected to be 25% to 30% year on year. Revenue growth from the PrettyLittleThing brand is expected to be approximately 75% above the 12 month revenue to 28 February 2017 of £55 million. The balance of the growth to around 60% will come from the Nasty Gal brand.]
Also statement on warehousing increases funded by a share offering (c.5% of co.)
"Plans to construct a new automated super-site of over 600,000 square feet, which will provide boohoo with over £2 billion of net sales capacity."
This will provide total net sales capacity of £3 billion on completion. Quite a bullish statement by management IMO in increasing warehouse capacity to this extent - the expectation of requiring space to sell 10X the amount sold in FY17, which would take 5 years to reach at current growth rates.
