For the three and twelve months ended 28 February, Boohoo reported net sales growth in the fourth quarter of 7%, and over the full year of 14%, in line with guidance.
It added fourth-quarter, gross sales growth was strong, up 26% on last year, while as expected, net sales growth in the quarter was impacted by higher returns rates year-on-year due to product mix. This is expected to continue in the first half of FY23.
In the UK, the group continues to deliver a strong trading performance, while its international performance continues to be impacted by longer customer delivery times as a result of pandemic-related supply chain pressures. However, in the fourth quarter, the group saw a return to growth in ‘Rest of World’ (ROW) due to the positive contribution from wholesale.
Boohoo expects, subject to audit, to report adjusted EBITDA for the financial year ended 28 February of approximately GBP125m (US$164.5m), in line with prior guidance issued in December and market expectations.
CEO John Lyttle says: “The group has delivered strong growth over the last two years, which has translated into significant market share gains. We are confident that pandemic-related headwinds are short-term in their nature, and our focus is to ensure the business is well-positioned for growth as these headwinds ease.”
Boohoo intends to publish its full-year results for the year on 4 May.
Meanwhile, suppliers to Boohoo Group will be increasingly scrutinised under its new Supplier Hub system aimed at increasing resilience and control the fast-fashion e-tailer detailed in a report this week.
As of 22 February, the Supplier Hub system launched by Boohoo requires each new supplier to obtain independent approval from Sourcing, Ethical Compliance, Factory Approver and Finance, and buyers will be unable to raise any purchase order from a factory or suppliers outside the system.
It was announced as part of the final report under the Boohoo Agenda for Change (A4C) programme conducted by Sir Brian Leveson launched in response after Boohoo Group found itself embroiled in a media storm in 2020 regarding its supplier factories in Leicester, which were alleged to be underpaying workers and making them work in unsafe conditions.