Clothing & Shoes

Boohoo profits soar 35% in full-year results

Revenue climbed 41% to £1.7bn in the period, as a result of longer established brands continuing to grow, whilst newer brands delivered ‘rapid incremental growth’

Boohoo has reported that its pre-tax profit soared by 35% to £124.7m for the year ended 28 February 2021, up from £92.2m the prior year.

In the same period, revenue climbed 41% to £1.7bn, up from £1.2bn the previous year, which Boohoo attributed to the growth of its longer established brands, adding that its newer brands have also delivered “rapid incremental growth”.

Sales also benefited from the number of customers buying activewear in the last 12 months, with activewear sales up by 28% to £17.8m. In addition, loungewear saw an 8% increase in the number of items per basket, which was largely attributed to the impact of the pandemic.

Last year the retailer found itself in the midst of a workers’ rights scandal after an undercover report from The Sunday Times revealed that its employees were paid as little as £3.50 an hour in some cases.

In its full-year results, CEO John Lyttle responded by confirming that the group has invested in “improving the oversight and transparency of our supply chain” and is “committed to embedding positive change”.

He said: “As we build for the future, we continue to invest across our platform, people and technology to further cement our position as a leader in global fashion e-commerce.

“We completed over £250m of acquisitions in the period, which included Oasis, Warehouse, Debenhams, Dorothy Perkins, Burton and Wallis, as well as the purchase of the remaining minority interest in PrettyLittleThing in a transaction that to date has resulted in substantial earnings enhancement for the group’s shareholders.”

He added: “Our newly-acquired brands are being re-energised and made relevant for today’s consumer across a broader market demographic. We are very excited about their potential and are already seeing the early rewards from their growth.”

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