TIDMBOO
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
GBP 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. R evenue 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
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 / Tel: +44 (0)20 7466 5000
Toto Berger / Verity Parker
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)
GBPm 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)
GBPm 4m to 31 December 2m to 28 February 12m to 28 February
----------------------------
FY22 FY21 yoy yoy FY22 FY21 yoy yoy FY22 FY21 yoy yoy
% % CER % % % %
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%
------ ------ ----- ------- ------ ------ ----- ----- -------- -------- ----- -----
GBPm 3m to 31 May 3m to 31 August 6m to 31 August
----------------------------
FY22 FY21 yoy yoy FY21 FY20 yoy yoy FY21 FY20 yoy yoy
% % CER % % % %
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)
GBPm 4m to 31 December 2m to 28 February 12m to 28 February
----------------------------
FY21 FY20 yoy yoy FY21 FY20 yoy yoy FY21 FY20 yoy yoy
% % CER % % % %
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%
------ ------ ---- ------- ------ ------ ----- ----- -------- -------- ---- -----
GBPm 3m to 31 May 3m to 31 August 6m to 31 August
---------------------------
FY21 FY20 yoy yoy FY21 FY20 yoy yoy FY21 FY20 yoy yoy
% % CER % % % %
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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