Online & Digital

Boohoo eyes FY22 profits of £125m as sales surge 14%

However, sales in Q4 were impacted by higher returns rates year-on-year due to product mix, and Boohoo said this is expected to continue in the first half of FY23

Boohoo group plc has revealed it expects adjusted EBITDA for the 12 months ending 28 February 2022 (FY22) to reach approximately £125m, subject to audit, which is in line with prior guidance issued in December and market expectations.

The announcement comes as Boohoo reported sales growth of 14% in FY22, up 61% on a two-year basis.

Additionally, the online retailer delivered growth of 7% in the fourth quarter (Q4) of 2021 and growth of 48% on a two-year basis.

Q4 also saw “strong” gross sales growth of 26% year-on-year, and 57% on a two-year basis.

However, sales in the quarter were impacted by higher returns rates year-on-year due to product mix, and Boohoo said this is expected to continue in the first half of FY23.

Boohoo said the group “continues to deliver a strong trading performance” in the UK, while international performance continues to be impacted by longer customer delivery times due to pandemic-related supply chain pressures.

Meanwhile, in Q4 the group saw a return to growth in ROW due to the “positive” contribution from wholesale.

John Lyttle, group CEO, said: “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.”

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