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RNS Number : 0578P boohoo group plc 16 June 2022
16 June 2022
boohoo group plc - trading statement for the three months to 31 May 2022
Three months to 31 May
£ million FY23 FY22 Change on FY22 CER((1)) Change on FY20
Group total revenue 445.7 486.1 -8 % -8% +75%
Revenue by region
UK 272.1 274.6 -1% -1% +94%
ROE((2)) 49.6 54.4 -9% -7% +30%
USA 95.0 131.9 -28% -26% +85%
ROW((3)) 29.0 25.2 +15% +15% +20%
(1) CER designates Constant Exchange Rate translation of foreign currency
revenue. (2) ROE is rest of Europe. (3) ROW is rest of world.
Financial highlights
· Due to lockdowns driving prior year comparative strength, and in line
with prior guidance, revenues declined 8% in the quarter, but up 75% over the
three-year pre-pandemic period reflecting multi-year market share gains across
the Group's multi-brand platform
· As expected, gross demand growth remained positive against tough
comparatives, +9% year-on-year, with net sales impacted by the ongoing
normalisation of returns due to product mix change
· UK sales improved month-on-month in the period and returned to net
sales growth in May. Underlying gross demand remained strong +21% as our
leading proposition continues to resonate with customers
· International performance continued to be impacted by increased
delivery times, although wholesale drove growth in ROW and contributed to
ROE's performance
· Gross margin for the three months 52.8%, down 220bps vs. a strong
prior year comparative, but up 240bps vs. the second half of the previous
financial year, and improved through the quarter
Progress against strategic priorities
At the full year results in May, the Group outlined a series of actions
focussed on optimising its operations and best positioning itself to rebound
strongly as pandemic-related headwinds ease, and is pleased with the continued
progress made in these areas, as outlined below:
· Sourcing and freight
The Group has continued to increase sourcing from near-shore markets to reduce
exposure to elevated inbound freight costs, with a 10 percentage point
increase in short-lead time product mix compared to the same period last year
· Stock management and returns
Inventory has been tightly controlled in the quarter, with lower levels of
stock compared to year end and improvements in inventory turn and increased
supply chain flexibility
· Cost management
Overheads continue to be managed tightly despite the significant inflationary
backdrop through scaling of acquisitions and improved marketing efficiencies
· Unlocking strategic enablers
Continued progress has been made on key strategic projects, with the
automation project in Sheffield still anticipated to go-live in H2 of this
financial year. The Group has signed a lease for a new distribution centre in
Elizabethtown, Pennsylvania, to support its international growth ambitions and
transform the customer proposition in a key focus market, with go-live still
anticipated in mid-2023. Wholesale continues to scale with one UK partnership
launched in the quarter.
Guidance
The Group's outlook for the year ending 28 February 2023 remains unchanged.
Revenue growth for FY23 is expected be low-single digits, with a return to
growth in Q2 and growth rates improving in the second half of the year as the
Group annualises high returns rates and normalising consumer demand. Adjusted
EBITDA margins are expected to be between 4% and 7%, in line with prior
guidance, as the Group continues to be affected by pandemic-related and
inflationary factors that negatively impact costs within its supply chain and
international competitive proposition, offset to some extent by the financial
benefits from our strategic priorities and leveraging of overheads.
John Lyttle, CEO, commented:
"I am pleased with the progress we are making towards our strategic
priorities, which is already having a meaningful impact operationally within
the business. We have seen promising signs from the Group's sales performance
in the UK, which has improved month-on-month in the period and we are looking
ahead towards our key summer trading season as holidays ramp up and customers
look to the latest fashion from across our brands. Looking forward, we will
continue to focus on optimising both our financial and operational performance
to ensure the business is well placed to take advantage of future growth
opportunities."
Investor and analyst conference call
boohoo group plc will today host a conference call for analysts and investors
at 8.30am BST. The dial in details for the call are as follows:
UK Number: +44 (0)330 165 4012
Participant pin code: 1722259
Webcast link: https://stream.brrmedia.co.uk/broadcast/62a0c5fc19aa2a662fe172a9
(https://stream.brrmedia.co.uk/broadcast/62a0c5fc19aa2a662fe172a9)
Notice of half year results
The Group intends to publish its Half Year results for six months ended 31
August 2022 on 28 September 2022
Enquiries
boohoo group plc
Neil Catto, Chief Financial Officer Tel: +44 (0)161 233 2050
Alistair Davies, Investor Relations Tel: +44 (0)161 233 2050
Clara Melia, Investor Relations Tel: +44 (0)20 3289 5520
Mark Mochalski, Investor Relations Tel: +44 (0)20 3239 6289
Zeus Capital - Nominated adviser and joint broker
Nick Cowles / Andrew Jones Tel: +44 (0)161 831 1512
Benjamin Robertson Tel: +44 (0)20 3829 5000
Jefferies - Joint broker
Philip Noblet / Max Jones Tel: +44 (0)20 7029 8000
Buchanan - Financial PR adviser boohoo@buchanan.uk.com
Richard Oldworth / Kim Looringh-van Beeck / Toto Berger / Verity Parker Tel: +44 (0)20 7466 5000
About boohoo group plc
"Leading the fashion eCommerce market"
Founded in Manchester in 2006, boohoo is an inclusive and innovative global
brand targeting young, value-orientated customers, pushing boundaries to bring
its customers up-to-date and inspirational fashion, 24/7.
In 2017, the group extended its customer offering through the acquisitions of
the vibrant fashion brand PrettyLittleThing and free-thinking brand Nasty Gal.
In March 2019, the group acquired the MissPap brand, in August 2019 the Karen
Millen and Coast brands and in June 2020 the Warehouse and Oasis brands, all
complementary to the group's scalable, multi-brand platform. In January 2021,
the group acquired the intellectual property assets of Debenhams, with the
goal of transforming a leading UK fashion and beauty retailer into a digital
department store and marketplace through a new capital-light and low-risk
operating model. In February 2021, the group acquired the intellectual
property assets of UK brands Dorothy Perkins, Wallis and Burton. As at 28
February 2022, the boohoo group had 20 million active customers across all its
brands around the world.
Cautionary Statement
Certain statements included or incorporated by reference within this
announcement may constitute "forward-looking statements" in respect of the
group's operations, performance, prospects and/or financial condition.
Forward-looking statements are sometimes, but not always, identified by their
use of a date in the future or such words and words of similar meaning as
"anticipates", "aims", "due", "could", "may", "will", "should", "expects",
"believes", "intends", "plans", "potential", "targets", "goal" or "estimates".
By their nature, forward-looking statements involve a number of risks,
uncertainties and assumptions and actual results or events may differ
materially from those expressed or implied by those statements. Accordingly,
no assurance can be given that any particular expectation will be met and
reliance should not be placed on any forward-looking statement. Additionally,
forward-looking statements regarding past trends or activities should not be
taken as a representation that such trends or activities will continue in the
future. No responsibility or obligation is accepted to update or revise any
forward-looking statement resulting from new information, future events or
otherwise. Nothing in this announcement should be construed as a profit
forecast. This announcement does not constitute or form part of any offer or
invitation to sell, or any solicitation of any offer to purchase any shares or
other securities in the Company, nor shall it or any part of it or the fact of
its distribution form the basis of, or be relied on in connection with, any
contract or commitment or investment decisions relating thereto, nor does it
constitute a recommendation regarding the shares or other securities of the
Company. Past performance cannot be relied upon as a guide to future
performance and persons needing advice should consult an independent financial
adviser. Statements in this announcement reflect the knowledge and information
available at the time of its preparation. Liability arising from anything in
this announcement shall be governed by English law. Nothing in this
announcement shall exclude any liability under applicable laws that cannot be
excluded in accordance with such laws.
Appendix - prior period revenues by region
Revenue by period for the 3 months to 31 May 2022 (FY23)
£m 3m to 31 May
FY23 FY22 yoy % yoy % CER
Total 445.7 486.1 -8% -8%
Revenue by region
UK 272.1 274.6 -1% -1%
ROE 49.6 54.4 -9% -7%
USA 95.0 131.9 -28% -26%
ROW 29.0 25.2 +15% +15%
Revenue by period for the year to 28 February 2022 (FY22)
£m 4m to 31 December 2m to 28 February 12m to 28 February
FY22 FY21 yoy % yoy % CER FY22 FY21 yoy % yoy % FY22 FY21 yoy % yoy %
CER CER
Total 714.5 660.8 8% 9% 292.5 268.0 9% 9% 1,982.8 1,745.3 14% 14%
Revenue by region
UK 451.0 356.7 26% 26% 182.3 158.3 15% 15% 1,202.8 945.1 27% 27%
ROE 79.9 90.3 -11% -11% 34.9 30.5 14% 13% 219.2 244.7 -10% -9%
USA 145.8 168.2 -13% -12% 55.4 64.6 -14% -13% 451.6 435.1 4% 4%
ROW 37.8 45.6 -17% -16% 19.8 14.6 36% 34% 109.2 120.4 -10% -8%
£m 3m to 31 May 3m to 31 August 6m to 31 August
FY22 FY21 yoy % yoy % CER FY21 FY20 yoy % yoy % FY21 FY20 yoy % yoy %
CER CER
Total 486.1 367.8 32% 32% 489.8 448.7 9% 10% 975.9 816.5 20% 20%
Revenue by region
UK 274.5 183.0 50% 50% 294.9 247.2 19% 19% 569.4 430.2 32% 32%
ROE 54.4 63.4 -14% -12% 50.0 60.3 -17% -16% 104.4 123.7 -16% -14%
USA 131.9 92.0 43% 40% 118.6 110.2 8% 9% 250.5 202.2 24% 23%
ROW 25.2 29.4 -15% -10% 26.3 31.0 -15% -18% 51.5 60.4 -15% -14%
CER in this appendix for the year ended 28 February 2022 is calculated using
exchange rates prevailing during the year ending 28 February 2022.
Nomenclature: ROE - rest of Europe; ROW - rest of world; yoy - year-on-year;
CER - constant exchange rate
Revenue by period for the year to 28 February 2021 (FY21)
£m 4m to 31 December 2m to 28 February 12m to 28 February
FY21 FY20 yoy % yoy % CER FY21 FY20 yoy % yoy % FY21 FY20 yoy % yoy %
CER CER
Total 660.8 473.7 40% 40% 268.0 196.3 37% 36% 1,745.3 1,234.9 41% 41%
Revenue by region
UK 356.7 255.8 39% 39% 158.3 108.5 46% 46% 945.1 679.4 39% 39%
ROE 90.3 69.6 30% 32% 30.5 31.4 (3)% (1)% 244.7 188.4 30% 30%
USA 168.2 110.6 52% 51% 64.6 42.3 53% 46% 435.1 263.6 65% 63%
ROW 45.6 37.7 20% 24% 14.6 14.1 3% 11% 120.4 103.5 16% 19%
£m 3m to 31 May 3m to 31 August 6m to 31 August
FY21 FY20 yoy % yoy % CER FY21 FY20 yoy % yoy % FY21 FY20 yoy % yoy %
CER CER
Total 367.8 254.3 45% 45% 448.7 310.5 44% 44% 816.5 564.9 45% 44%
Revenue by region
UK 183.0 140.6 30% 30% 247.2 174.4 42% 42% 430.2 315.0 37% 37%
ROE 63.4 38.2 66% 65% 60.3 49.2 23% 21% 123.7 87.5 41% 40%
USA 92.0 51.3 79% 83% 110.2 59.4 86% 83% 202.2 110.7 83% 83%
ROW 29.4 24.2 22% 22% 31.0 27.5 12% 14% 60.4 51.7 17% 18%
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