REG - boohoo.com plc - Trading Update

BoohooAnnouncement

12/06/2018 07:00

RNS Number : 0314R
boohoo.com plc
12 June 2018
 






FOR IMMEDIATE RELEASE      
 


12 June 2018




The information contained within this announcement is deemed by the Company to constitute inside information stipulated under the Market Abuse Regulation (EU) No. 596/2014.  Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.
 
boohoo.com plc - trading update for the three months to 31 May 2018
                                                                                                                                       
"Leading the fashion eCommerce market"
 
 








Three months to 31 May




£ million


FY19


FY18


Increase


CER(1)




Group total revenue


183.6


120.1


53%


52%




Revenue by region




















  UK


110.7


74.6


49%


49%




  ROE(2)


22.3


12.2


82%


71%




  USA


31.4


17.9


75%


78%




  ROW(3)


19.2


15.4


24%


22%




 
(1): CER designates Constant Exchange Rate translation of foreign currency revenue. (2) ROE is rest of Europe. (3) ROW is rest of world.
 
Highlights
Group
·     Revenue £183.6 million, up 53% (52% CER(6))
·     Strong revenue growth and market share gains across all geographies with UK sales up 49% and international up 60%
·     Gross margin 55.2%, up 100bps
·     Strong balance sheet with net cash of £151 million (FY18: £74 million)
 
boohoo
·     Revenue £97.2 million, up 12% (10% CER) on last year's Q1 record growth
·     Gross margin 52.0% (FY18: 53.9%). Retail gross margin 54.6%, down 170bps year on year, and improved progressively throughout the quarter, with an exit rate up year on year
 
PrettyLittleThing
·     Revenue £79.2 million up 158% (160% CER)
·     Gross margin 58.7% up 490bps, driven by strong full-priced sales performance (retail gross margin 60.3% (FY18: 56.2%))
 
Nasty Gal
·     Revenue £7.2 million up 149% (163% CER)
·     Gross margin 58.9% (FY18: 69.9%), in line with FY18's exit rate and expectations
 
Outlook and guidance
Trading in the first quarter of the 2019 financial year has been strong and in line with our expectations. For the full year, we continue to expect group revenue growth to be 35% to 40% with adjusted EBITDA margin between 9% to 10%. All other guidance for the current financial year and our medium term guidance to deliver sales growth of at least 25% per annum and 10% EBITDA margin are unchanged.
 
Mahmud Kamani and Carol Kane, joint CEOs, commented:
"We are very pleased with the group's results for the first quarter of the financial year. Our multi-brand strategy is delivering above-market rates of growth globally. Significant market share gains have been achieved in all of our key focus markets, with our compelling combination of the latest fashion at incredible prices, backed by great customer service resonating strongly with our customers. The scale of group revenue is aligning with our ambition to become one of the dominant global online retailers and our focus on profitability continues to deliver industry-leading margins.
Our infrastructure continues to see record levels of investment as we invest ahead of our growth curve and develop a distribution network capable of supporting £3bn of net sales globally. The distribution centre extension and automation project at Burnley remain on track to complete towards the end of the financial year, with PrettyLittleThing's move to its own warehouse expected to complete early in the second half of the financial year.
We remain highly encouraged by our performance in the first quarter and confident of our expectations for the remainder of the year and beyond as we continue to execute on our winning strategy."
 
Investor and analyst conference call
boohoo.com will host a conference call for analysts and investors at 9.30am (UK time), 12 June. Dial in details:
 
UK Toll Number:              020 3428 1542
UK Toll-Free Number:   080 8237 0040
URL for international dial in numbers http://events.arkadin.com/ev/docs/FEL_Events_International_Access_List.pdf
Participant PIN Code:    14057437#
 




Enquiries








boohoo.com 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














Zeus Capital - Nominated adviser and joint broker








Nick Cowles/Andrew Jones (Corporate Finance)


Tel: +44 (0)161 831 1512




John Goold/Benjamin Robertson (Corporate Broking)


Tel: +44 (0)20 3829 5000














Jefferies Hoare Govett - Joint broker








Nick Adams/Max Jones


Tel: +44 (0)20 7029 8000














Buchanan - Financial PR adviser


boohoo@buchanan.uk.com




Richard Oldworth/Madeleine Seacombe/


Tel: +44 (0)20 7466 5000




Gemma Mostyn-Owen








 
 
About boohoo.com plc
 
"Leading the fashion eCommerce market"
 
Founded in Manchester in 2006, the group started life as boohoo.com, an inclusive and innovative brand targeting young, value-orientated customers. For over 10 years, boohoo has been pushing boundaries to bring its customers up-to-date and inspirational fashion, 24/7. boohoo has grown rapidly in the UK and internationally, expanding its offering with range extensions into menswear through boohooMAN. 
 
In early 2017 the group extended its customer offering through the acquisitions of the vibrant fashion brand PrettyLittleThing, and free-thinking brand Nasty Gal. United by a shared customer value proposition, our brands design, source, market and sell great quality clothes, shoes and accessories at unbeatable prices. This investment proposition has helped us grow from a single brand, into a major multi-brand online retailer, leading the fashion eCommerce market for 16 to 30-year-olds around the world. Today the boohoo group sells to over 9.8 million customer accounts across all its brands in almost every country in the world. 
 
 




 
Forward looking statements and disclaimer
 
Certain statements included or incorporated by reference within this announcement may be, or may be deemed to be "forward-looking statements" in respect of the boohoo 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. Except as required by applicable law or regulation (including to meet the requirements of the AIM Rules, MAR, the Prospectus Rules and/or the FSMA), the company expressly disclaims any responsibility or obligation to publish any updates or revisions to any forward-looking statements resulting from new information, future events or otherwise whether following any change to reflect events or circumstances after the date of this announcement. Nothing in this announcement should be construed as a profit forecast.
 
Disclaimer
 
This announcement and information communicated orally in relation to it 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 boohoo.com plc (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.
All subsequent oral or written forward-looking statements attributed to boohoo.com plc or any persons acting on its behalf are expressly qualified in their entirety by the cautionary statement above.  All forward-looking statements contained in this announcement are based on information available to the directors of the company at the date of this announcement, unless some other time is specified in relation to them, and the posting or receipt of this announcement shall not give rise to any implication that there has been no change in the facts set forth herein since such date.
 
 




 




Appendix - prior period revenues by region
 
Revenue by period for the year to 28 February 2019 (FY19)
 
 




£'000


3m to 31 May








FY19


FY18


yoy %


yoy % CER




Total


183,561


120,077


53%


52%










Revenue by region




 UK


110,738


74,532


49%


49%




 ROE


22,257


12,220


82%


71%




 USA


31,389


17,906


75%


78%




 ROW


19,177


15,419


24%


22%




 
 
Revenue by period for the year to 28 February 2018 (FY18)
 




£'000


4m to 31 December


2m to 28 February


12m to 28 February








FY18


FY17


yoy %


yoy % CER


FY18


FY17


yoy %


yoy %
CER


FY18


FY17


yoy %
 


yoy %
CER




Total


228,215


114,294


100%


93%


88,710


53,025


67%


65%


579,800


294,635


97%


92%










































Revenue by region




































 UK


135,642


65,465


107%


107%


56,592


34,820


63%


63%


355,614


181,981


95%


95%




 ROE


28,232


13,963


102%


76%


10,258


6,059


69%


54%


66,281


34,735


91%


73%




 USA


39,618


19,299


105%


102%


13,475


5,910


128%


133%


92,690


40,435


129%


122%




 ROW


24,723


15,567


59%


46%


8,385


6,236


34%


29%


65,215


37,484


74%


64%




 




£'000


3m to 31 May


3m to 31 August


6m to 31 August








FY18


FY17


yoy %


yoy % CER


FY18


FY17


yoy %


yoy %
CER


FY18


FY17


yoy %
 


yoy %
CER




Total


120,077


58,222


106%


98%


142,798


69,094


107%


104%


262,875


127,316


106%


101%










































Revenue by region




































 UK


74,532


37,396


99%


99%


88,849


44,300


101%


101%


163,381


81,696


100%


100%




 ROE


12,220


6,938


76%


61%


15,571


7,775


100%


92%


27,791


14,713


89%


77%




 USA


17,906


6,385


180%


155%


21,690


8,841


145%


136%


39,596


15,226


160%


145%




 ROW


15,419


7,503


105%


80%


16,688


8,178


104%


98%


32,107


15,681


105%


89%




 
 
 
 
CER in this appendix for the year ended 28 February 2018 is calculated using exchange rates prevailing during the year ending 28 February 2018.     Nomenclature: ROE - rest of Europe; ROW - rest of world; yoy - year-on-year; CER - constant exchange rate




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