Online fast fashion retailer Boohoo has reaffirmed its full-year revenue guidance after sales jumped by more than a third in the first-quarter.
In the three months to the end of May, group total revenue surged 39% to reach GBP254.3m (US$324m) from GBP183.6m a year earlier. Strong revenue growth was seen across all geographies with UK sales up 27% and international up 56%.
Gross margin, meanwhile, narrowed slightly to 55% from 55.2%.
Sales at the retailer’s namesake brand were up 27% on last year to GB123.5m, while PrettyLittleThing revenues reached GBP112.1m, up 42% on the prior year. Meanwhile, sales at Nasty Gal rose 157% to GBP18.2m, gathering momentum in all markets.
The firm says it continues to expect group revenue growth to be 25% to 30% with an adjusted EBITDA margin of about 10% for FY20.
“The group has made a strong start to the year as we continue to disrupt and capture market share in the UK and internationally across all our brands,” says CEO John Lyttle. “I’m delighted that the group topped the UK Hitwise rankings in May for the first time, demonstrating how our multi-brand strategy is really capturing our customers’ attention. We have ambitious plans for the group, and continue to invest to ensure that our scalable multi-brand platform is well-positioned to disrupt, gain market share and capitalise on the global opportunity in front of us.”
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By GlobalDataBoohoo still generating impressive growth
Emily Salter, retail analyst at GlobalData, notes that young fast fashion retailer boohoo.com drove stronger growth than in the first quarter last year, and that “despite being a mature brand, it is still hugely popular among its target shopper base and is able to drive more frequent purchases and attract new customers through relevant marketing, such as celebrity collaborations.”
She adds Boohoo’s results prove that if a retailer’s product and strategy resonate with its customer base, it can generate strong growth regardless of tough trading conditions.
In addition, maintaining clear individual brand identities is particularly important for the Boohoo group due to the highly competitive and saturated nature of the young fast fashion market, she adds. So the firm must ensure that it creates a unique brand image and product proposition for its recently acquired Miss Pap brand to stand out in the market.
“As PrettyLittleThing’s sales continue to grow substantially, bolstered in particular by its celebrity collaborations and ‘shape’ ranges (Tall, Petite, Shape, Plus), its revenue was only GBP11.4m behind that of boohoo.com in Q1, so looks poised to overtake its more mature sister brand soon. FY2019/20 is the first full year that PrettyLittleThing will be operating from its larger Sheffield distribution site, giving it the capacity to generate consistently high levels of growth whilst maintaining customer satisfaction.”
