Boohoo has reported a 32% surge in group revenues for the three months to 31 May 2021 from £367.8m to £486.1m which was spurred on by retailers turning to online shopping during the pandemic.
UK revenue contributed heavily to the overall sales growth, which saw a 50% increase from £183m to £274.6m for the period and was followed by a 43% rise in US sales, however sales in Europe and the rest of the world dipped to 15% and 14% respectively.
As of 28 February 2021, net cash dropped to £199m from £276m which the group claimed reflected £143.5m worth of investments across its offices and infrastructure.
During the quarter, the group also successfully relaunched the Debenhams website in April 2021 with online fashion, beauty and homewares departments.
Furthermore, the retailer also shared an update for its Agenda for Change programme which aims to increase the transparency of its entire manufacturing supplier base. The update comes after the group was accused last year of poor worker conditions.
In line with a report by retired judge, Sir Brian Leveson, who has been monitoring the case alongside KPMG, the group launched a new sustainability strategy, UP.FRONT, a “no-nonsense” set of measurable targets which focuses on “clothes made smarter” and agreeing better terms for its suppliers.
Mahmud Kamani and Carol Kane, group co-founders, said: “We are extremely proud of the incredible amount of change our teams have delivered, with the group making exceptional progress over the last 11 months in developing a robust, fair and transparent supply chain, which is recognised in Sir Brian’s latest report.
“As a group we are on track to meet all of the commitments that we set out last year and we remain committed to setting the bar, to drive measurable and sustainable change.”
Looking forward, following its previous expectations, the group anticipates that for the year ending 28 February 2022, revenue growth of around 25% and adjusted EBITDA margins to be in the region of 9.5-10%.
John Lyttle, CEO, Boohoo, said: “The two year compound annual growth rate (CAGR) of 38% highlights the group’s continued phenomenal growth, with revenues having increased 91% over the last two years, with particularly strong performance in key markets such as the UK and US, where sales have more than doubled.
“We continue to make great progress on our agenda for change programme, with this morning’s latest report from Sir Brian Leveson outlining the seriousness with which the group is determined to develop and demonstrate a gold standard in our supply chain.”
He added: “Our ongoing investment in infrastructure and our platform leaves us well-placed to maximise the opportunities for growth as we build the business for the future.”