Boohoo posts 32 percent sales growth in the first quarter

For the three months to May 31, 2021, Boohoo Group plc reported revenue growth of 32 percent, with two year CAGR of 38 percent. Gross margin for the 90 days was 55 percent, consistent with two years ago and down 60bps against a solid comparative in the first quarter last year.

Commenting on the trading update, John Lyttle, the company’s CEO, said: “I am delighted with our performance in the first quarter, particularly since it was always likely to be challenging to produce strong growth rates on this past year, when lockdowns around the world drove such high traffic to online retailers.”

The company said that it integrated Dorothy Perkins, Wallis and Burton brands onto multi-brand platform. The business also announced the launch of the new Debenhams digital department store, with fashion, beauty and homewares.

The company’s distribution centre in Wellingborough is currently live with Daventry site on schedule for operational use in the second quarter.

Boohoo said that the guidance for the entire year ending February 28, 2022 remains unchanged, with earnings growth of around twenty five percent and adjusted EBITDA margins likely to be in the spot of 9.5-10 percent.

The company’s medium-term guidance for 25 percent sales growth each year and a ten percent adjusted EBITDA margin remains unchanged.