REG - boohoo.com plc - Trading Update <Origin Href="QuoteRef">BOOH.L</Origin>
RNS Number : 0827Hboohoo.com plc11 March 2015
For immediate release
11 March 2015
boohoo.com plc - trading update for the two months and highlights for the year to 28th February 2015
"The Global Fashion Leader for a Social Generation"
'000
Two months to 28th February 2015
Year to 28th February 2015
FY15
FY14
Increase
CER
FY15
FY14
Increase
CER
Sales
21,861
17,870
22%
24%
139,851
109,791
27%
31%
UK
14,558
12,845
13%
13%
94,342
70,992
33%
33%
ROE
2,903
2,202
32%
46%
18,086
13,058
39%
47%
ROW
4,400
2,823
56%
59%
27,423
25,741
7%
16%
Highlights for the two months to 28th February 2015
Revenue up 22% (24% CER)
Strong performance in the Rest of the World
Gross margin approximately 58%, reflecting the January sale
3m active customers, up 29% on prior year
Focus on conversion and profit margin during the period ahead of accelerating marketing spend into the Spring Summer 2015 season
Highlights for the year to 28th February 2015
Revenue up 27% (31% CER)
Gross margin approximately 61%
EBITDA margin for the year expected to be approximately 10%
Continued investment in warehouse infrastructure with the WMS successfully implemented and construction of the warehouse extension scheduled for completion in April
New fully responsive website delivering improved mobile experience with handheld now accounting for almost 50% of visits
Product range continues to be extended with the successful launch of boohoo Petite and boohoo FIT during the period
54m cash on balance sheet at year end
Commentary
Following a challenging third quarter to our financial year in the UK, we have focussed on driving customer conversion and margin during the two months to February 2015. January is a promotional month and February a transitional month into the Spring season so we have held marketing spend at c.10% of sales ahead of increasing that towards levels seen in the first quarter last year. Early indications suggest our Spring #WeAreUs campaign is being positively received and was trending at the number one position on Twitter on launch day.
We have continued to gain market share in the UK, achieving a 2.17% share of traffic in February 2015 according to Hitwise, a 12% improvement on the prior year.
The Rest of Europe continued to perform strongly for boohoo.com during the period, with 46% constant currency growth, a reflection of our focus on fewer key markets. In the Rest of World, investment in our proposition continued to produce encouraging results with continued acceleration of growth in the last two months of the year.
Group EBITDA margins are expected to be in line with previous guidance of approximately 10% for the year.
Our investment in infrastructure and IT continues and we expect the construction of the extension to the warehouse to be completed during April which will provide significant capacity for future growth.
Mobile now represents almost half of all sessions and daily unique visitors. The new responsive website launched in September has seen mobile conversion improve by over 40% in the last quarter.
The Board has considered the levels of cash in the business and will be seeking authorisation to buy back up to 10% of issued share capital to be approved at the next AGM. Any share buy back would also be conditional on independent shareholders approving a whitewash resolution pursuant to Rule 9 of the City Code on Takeovers and Mergers.
Joint Chief Executives Mahmud Kamani and Carol Kane commented:
"We continue to build our business for the long term, as we stated at our IPO last year, and our clear objective is to deliver sustainable growth. We remain absolutely focussed on execution and are increasing our marketing spend in FY16 to drive momentum in the business."
Analyst/Investor conference call:
boohoo.com will host a conference call for analysts and investors at 9.30am (UK time) today. Please call/email Buchanan for dial-in details. The results for the full year are expected to be announced on 6th May 2015.
Enquiries
boohoo.com plc
Mahmud Kamani, Joint Chief Executive
Carol Kane, Joint Chief Executive
Neil Catto, Chief Financial Officer
Benjamin Robertson, Investor Relations
c/o Buchanan Tel: +44 (0)20 7466 5000
ben.robertson@boohoo.com
Tel: +44 77 6851 1056
Buchanan - Financial PR adviser
Richard Oldworth
Helen Chan
Gabriella Clinkard
Tel: +44 (0)20 7466 5000
Zeus Capital - Nominated adviser and joint broker
Nick Cowles
Andrew Jones
John Goold
Tel: +44 (0)161 831 1512
Tel: +44 (0)20 7533 7727
Jefferies Hoare Govett - joint broker
Nick Adams
Max Jones
Ben Bailey
Tel: +44 (0)20 7029 8000
About boohoo.com
"24/7 Global Fashion"
Keeping one step ahead of the trends or making a subtle style change is easy with boohoo.com and with up to 100 pieces hitting the site every day and a new collection each week, boohoo.com never stops - it's 24/7 fashion at its best.
From the UK's best kept fashion secret to one of the fastest growing own brand, international e-tailers, boohoo.com has quickly evolved into a global fashion leader of its generation. Combining cutting-edge, aspirational design with an affordable price tag, boohoo.com has been pushing boundaries since 2006 to bring its customers all the latest looks for less.
www.boohoo.com
www.boohoo.com/newz
fr.boohoo.com
www.boohoo.com/europe
www.boohoo.com/sweden
de.boohoo.com
www.boohoo.com/usa
www.boohoo.com/denmark
it.boohoo.com
www.boohoo.com/canada
www.boohoo.com/norway
nl.boohoo.com
www.boohoo.com/aus
es.boohoo.com
Appendix - prior period revenues
Revenue by period for the year ending 28th February 2015
'000s
Q1
yoy %
yoy %
CER
Q2
yoy %
yoy %
CER
Sales
30,659
24%
30%
36,538
37%
41%
UK
20,686
44%
44%
24,919
50%
50%
ROE
3,891
36%
40%
4,828
50%
61%
ROW
6,082
(20)%
(6)%
6,791
0%
8%
'000s
4m to Dec
yoy %
yoy %
CER
2m to Feb
yoy %
yoy %
CER
FY15
yoy %
yoy %
CER
Sales
50,793
25%
27%
21,860
22%
24%
139,851
27%
31%
UK
34,179
26%
26%
14,558
13%
13%
94,342
33%
33%
ROE
6,464
35%
41%
2,903
32%
46%
18,086
39%
47%
ROW
10,150
19%
24%
4,399
56%
59%
27,423
7%
16%
Revenue by period for the year ending 28th February 2014
'000s
Q1
yoy %
yoy %
CER
Q2
yoy %
yoy %
CER
Sales
24,825
127%
118%
26,607
78%
80%
UK
14,354
68%
68%
16,577
80%
80%
ROE
2,862
112%
104%
3,219
107%
93%
ROW
7,609
626%
597%
6,811
63%
76%
'000s
4m to Dec
yoy %
yoy %
CER
2m to Feb
yoy %
yoy %
CER
FY14
yoy %
yoy %
CER
Sales
40,488
44%
45%
17,870
35%
38%
109,791
63%
63%
UK
27,216
50%
50%
12,845
54%
54%
70,992
60%
60%
ROE
4,774
63%
52%
2,203
45%
33%
13,058
78%
66%
ROW
8,498
21%
28%
2,823
(16)%
(5)%
25,741
65%
72%
This information is provided by RNSThe company news service from the London Stock ExchangeENDTSTGGUWAWUPAGQU
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