TIDMBOO
RNS Number : 6225L
boohoo group plc
14 January 2021
14 January 2021
The information contained within this announcement is deemed by
the company to constitute inside information stipulated under the
Market Abuse Regulation (EU) No. 596/2014. Upon the publication of
this announcement via the Regulatory Information Service, this
inside information is now considered to be in the public
domain.
boohoo group plc - trading statement for the four months ended
31 December 2020
("boohoo" or "the Group")
Strong peak trading performance and update on Agenda for
Change
Four months to 31 December Ten months to 31 December
GBP million FY21 FY20 Increase CER(1) FY21 FY20 Increase CER(1)
------ ------ --------- ------- -------- -------- --------- -------
Group total
revenue 660.8 473.7 40 % 40% 1,477.3 1,038.5 42% 42%
------ ------ --------- ------- -------- -------- --------- -------
Revenue by
region
UK 357.2 255.8 40% 40% 787.4 570.7 38% 38%
ROE(2) 90.4 69.6 30% 32% 214.1 157.1 36% 36%
USA 167.7 110.6 52% 51% 370.0 221.3 67% 67%
ROW(3) 45.5 37.7 20% 24% 105.8 89.4 18% 20%
------ ------ --------- ------- -------- -------- --------- -------
(1) CER designates Constant Exchange Rate translation of foreign
currency revenue. (2) ROE is rest of Europe. (3) ROW is rest of
world.
Group Highlights
-- Strong revenue growth of 40% in four months, with growth across all brands and geographies
-- Significant progress made on Agenda for Change programme
-- Successful integration and re-launch of Oasis and Warehouse
brands onto our multi-brand platform
-- Gross margin for the four months 53.0%, down 50 bps year on year
-- Net cash of GBP386.9 million (31 August 2020: GBP344.9
million), providing financial flexibility to support future
growth
-- Close to finalising an extension of UK warehousing capacity,
with a new site to open in April 2021, creating up to 1,000
jobs
Guidance
Following the strong peak trading performance, Group revenue
growth for the financial year to 28 February 2021 is expected to be
36% to 38%, ahead of our previous guidance of 28% to 32%.
The Group continues to expect to deliver an adjusted EBITDA
margin for the year at around 10% despite COVID-19 related
headwinds for distribution costs, planned gross margin investment
and accelerated discretionary customer acquisition spend.
Our medium-term guidance remains for 25% sales growth per annum
and a 10% adjusted EBITDA margin, reflecting the Board's confidence
in the Group's prospects as it continues to invest to support
growth and raise standards across its supply chain.
Brexit
The Group has implemented operational systems designed to
minimise the impact of Brexit on its customer proposition in
Europe. The Group does however expect a small cost headwind,
predominantly from higher distribution and administrative costs,
which the Group will seek to mitigate where possible.
UK operations update
The Group is close to finalising an extension of UK warehousing
capacity ("UK3") with a new site to open in April 2021 that will
support the creation of up to 1,000 jobs in the first 12 months of
operation. The site is intended to be utilised by the Nasty Gal,
Karen Millen, Coast, Oasis and Warehouse brands, with a transition
expected over the course of the first half of the next financial
year. The addition of UK3 will free up capacity within our existing
network as we develop these facilities to support future expansion
plans.
Update on Agenda for Change
Following the publication of the Independent Review of boohoo's
UK supply chain on 25 September 2020, the Group set out its Agenda
for Change programme, which focused on a number of key areas:
corporate governance; redefining our purchasing practices; raising
standards across our supply chain; supporting Leicester's workers
and workers' rights; support for suppliers; and demonstrating best
practice in action.
On 26 November 2020, the Group announced the appointment of Sir
Brian Leveson PC to provide independent oversight of the Agenda for
Change programme, and committed to publishing progress reports. In
line with the Group's ongoing commitment to transparency, Sir Brian
Leveson's first report has today been published on the Group's
website. The report acknowledges the pace with which boohoo is
making towards effecting change, while noting that recommendations
remain work in progress. The report can be viewed in full on our
PLC website.
The Group believes it is making excellent progress as it works
to implement the Review's recommendations as part of our Agenda for
Change programme. Actions implemented to date include:
Strengthening governance and teams with key appointments
-- Shaun McCabe was appointed to the Board on 17 November 2020
as an Independent Non-Executive Director and Chair of the Group's
Audit Committee and its newly constituted Risk Committee
-- Significant investments into strengthening the Group's
internal Responsible Sourcing, Compliance and Sustainability
teams
-- Appointing KPMG as consultants to advise and monitor the
implementation of the Agenda for Change programme
-- The Group is also making good progress towards the
appointment of an additional Independent Non-Executive Director
with Environmental, Social and Governance (ESG) experience
Significantly increasing oversight of the Group's supply
chain
-- An Agenda for Change committee has been established including
senior members of boohoo, Sir Brian Leveson and KPMG
-- The appointments of Bureau Veritas and Verisio to support the ethical audits of suppliers and sub-contractors, together with enquiry and enforcement specialists headed by former Deputy Commissioner of the Metropolitan Police Tim Godwin OBE to support Sir Brian's independent enquiries
-- A Supply Chain Compliance Committee reporting to the Board
has been established, led by the Group's Director of Responsible
Sourcing
-- 64 suppliers have been removed from the Group's UK supplier
list, with further investigations ongoing
-- Continued progress is being made on the mapping and auditing
of the Group's tier one and tier two supply base, in the UK and
internationally, led by teams from Bureau Veritas and Verisio
Demonstrating best practice in action
-- Good progress is being made on boohoo's state-of-the art
manufacturing facility based in Leicester, expected to launch later
this year, which will also provide a hub for community outreach
-- Alternative ethical suppliers are being identified as the
Group reviews its supply chain across the UK and internationally,
focused on setting a new industry-wide standard for ethical supply
chains
-- Commitment to publish UK tier one and tier two supplier list
by end of March, and global supplier list by the end of September,
which will both be updated every 6 months
The Group and Sir Brian Leveson will continue to provide
stakeholders with further updates on its Agenda for Change
programme throughout 2021, including publication of its first
Annual Sustainability Report alongside our Annual Report and
Accounts.
Mahmud Kamani, Group Executive Chairman, commented:
"I'm pleased to publish Sir Brian Leveson's first report today.
I'm immensely proud of the speed with which our team has worked to
effect change during such a challenging period for the Group, and
it's encouraging to see our progress acknowledged in the report.
We've added further independent experience to the Board and its
committees in the period, and I was delighted to welcome Shaun
McCabe to the Board in November. I'd like to take this opportunity
to thank our team for their exceptional hard work over the last few
months, and to reinforce our commitment to being a leader for
positive change in UK textiles manufacturing. We have lots to do
still, but an exciting year lies ahead for boohoo and our
multi-brand platform in 2021."
John Lyttle, CEO, commented:
"I'm delighted with the Group's performance over the peak
trading period. Our team worked exceptionally hard in 2020 as we
navigated the many challenges, including the COVID-19 pandemic and
the successful acquisition and integration of Oasis and Warehouse.
Growth has been strong across our multi-brand platform and we have
continued to grow our market share across all geographies. I'm
pleased to be able to provide a further update on our Agenda for
Change programme today, which demonstrates our ongoing commitment
to transparency as we invest in our approach to sustainability and
our supply chain for the benefit of all of the Group's
stakeholders. The Group is in an excellent position entering 2021,
which we expect to be another year of progress towards our goal of
leading the fashion e-commerce market globally."
Investor and analyst conference call
boohoo group plc will today host a conference call for analysts
and investors at 9.30am GMT. The dial in details for the call are
as follows:
UK Toll Number: +44 3333000804
UK Toll-Free
Number: 08003589473
Participant pin
code: 35083184 #
For international access numbers, please click here .
Notice of results
boohoo group plc expects to report its results for the 12 months
to 28 February 2021 in early May 2021.
Enquiries
boohoo group plc
Neil Catto, Chief Financial Officer Tel: +44 (0)161 233
2050
Alistair Davies, Investor Relations Tel: +44 (0)161 233
2050
Clara Melia, Investor Relations Tel: +44 (0)20 3289
5520
Zeus Capital - Nominated adviser and
joint broker
Nick Cowles/Andrew Jones (Corporate Finance) Tel: +44 (0)161 831
1512
John Goold/Benjamin Robertson (Corporate Tel: +44 (0)20 3829
Broking) 5000
Jefferies - Joint broker
Philip Noblet/Max Jones Tel: +44 (0)20 7029
8000
Buchanan - Financial PR adviser boohoo@buchanan.uk.com
Richard Oldworth / Kim Looringh-van Beeck Tel: +44 (0)20 7466
/ Toto Berger / Sophie Wills 5000
About boohoo group plc
"Leading the fashion eCommerce market"
Founded in Manchester in 2006, boohoo is an inclusive and
innovative brand targeting young, value-orientated customers. Since
2006, boohoo has been pushing boundaries to bring its customers
up-to-date and inspirational fashion, 24/7. boohoo has grown
rapidly in the UK and internationally, expanding its offering with
range extensions into menswear, through boohooMAN.
In early 2017 the group extended its customer offering through
the acquisitions of the vibrant fashion brand PrettyLittleThing,
and free-thinking brand Nasty Gal. In March 2019 the group acquired
the MissPap brand, in August 2019 the Karen Millen and Coast
brands, and in June 2020 the Warehouse and Oasis brands, all
complementary to the group's scalable, multi-brand platform. United
by a shared customer value proposition, our brands design, source,
market and sell great quality clothes, shoes and accessories at
unbeatable prices. These investment propositions have helped us
grow from a single brand, into a major multi-brand online retailer,
leading the fashion eCommerce market for 16 to 40-year-olds around
the world. As at 31 August 2020, the boohoo group had just over 17
million active customers across all its brands around the
world.
Cautionary Statement
Certain statements included or incorporated by reference within
this announcement may constitute "forward-looking statements" in
respect of the group's operations, performance, prospects and/or
financial condition. Forward-looking statements are sometimes, but
not always, identified by their use of a date in the future or such
words and words of similar meaning as "anticipates", "aims", "due",
"could", "may", "will", "should", "expects", "believes", "intends",
"plans", "potential", "targets", "goal" or "estimates". By their
nature, forward-looking statements involve a number of risks,
uncertainties and assumptions and actual results or events may
differ materially from those expressed or implied by those
statements. Accordingly, no assurance can be given that any
particular expectation will be met and reliance should not be
placed on any forward-looking statement. Additionally,
forward-looking statements regarding past trends or activities
should not be taken as a representation that such trends or
activities will continue in the future. No responsibility or
obligation is accepted to update or revise any forward-looking
statement resulting from new information, future events or
otherwise. Nothing in this announcement should be construed as a
profit forecast. This announcement does not constitute or form part
of any offer or invitation to sell, or any solicitation of any
offer to purchase any shares or other securities in the Company,
nor shall it or any part of it or the fact of its distribution form
the basis of, or be relied on in connection with, any contract or
commitment or investment decisions relating thereto, nor does it
constitute a recommendation regarding the shares or other
securities of the Company. Past performance cannot be relied upon
as a guide to future performance and persons needing advice should
consult an independent financial adviser. Statements in this
announcement reflect the knowledge and information available at the
time of its preparation. Liability arising from anything in this
announcement shall be governed by English law. Nothing in this
announcement shall exclude any liability under applicable laws that
cannot be excluded in accordance with such laws.
Appendix - prior period revenues by region
Revenue by period for the 10 months to 31 December 2020
(FY21)
GBPm 4m to 31 December 10m to 31 December
----------------------------- ---------------------------------
FY21 FY20 yoy yoy FY21 FY20 yoy yoy
% % CER % % CER
------ ------ ---- ------- -------- -------- ---- -------
Total 660.8 473.7 40% 40% 1,477.3 1,038.5 42% 42%
------ ------ ---- ------- -------- -------- ---- -------
Revenue by region
-------------------------------------- -------- -------- ---- -------
UK 357.2 255.8 40% 40% 787.4 570.7 38% 38%
------ ------ ---- ------- -------- -------- ---- -------
ROE 90.4 69.6 30% 32% 214.1 157.1 36% 36%
------ ------ ---- ------- -------- -------- ---- -------
USA 167.7 110.6 52% 51% 370.0 221.3 67% 67%
------ ------ ---- ------- -------- -------- ---- -------
ROW 45.5 37.7 20% 24% 105.8 89.4 18% 20%
------ ------ ---- ------- -------- -------- ---- -------
GBP'000 3m to 31 May 3m to 31 August 6m to 31 August
----------------------------- ---------------------------
FY21 FY20 yoy yoy FY21 FY20 yoy yoy FY21 FY20 yoy yoy
% % CER % % % % CER
CER
------ ------ ---- ------- ------ ------ ---- ----- ------ ------ ---- -------
Total 367.8 254.3 45% 45% 448.7 310.5 44% 44% 816.5 564.9 45% 44%
------ ------ ---- ------- ------ ------ ---- ----- ------ ------ ---- -------
Revenue by region
---------------------------------------- ------ ------ ---- ----- ------ ------ -------
UK 183.0 140.6 30% 30% 247.2 174.4 42% 42% 430.2 315.0 37% 37%
------ ------ ---- ------- ------ ------ ---- ----- ------ ------ -------
ROE 63.4 38.2 66% 65% 60.3 49.2 23% 21% 123.7 87.5 41% 40%
------ ------ ---- ------- ------ ------ ---- ----- ------ ------ ---- -------
USA 92.0 51.3 79% 83% 110.2 59.4 86% 83% 202.2 110.7 83% 83%
------ ------ ---- ------- ------ ------ ---- ----- ------ ------ ---- -------
ROW 29.4 24.2 22% 22% 31.0 27.5 12% 14% 60.4 51.7 17% 18%
------ ------ ---- ------- ------ ------ ---- ----- ------ ------ ---- -------
Revenue by period for the year to 29 February 2020 (FY20)
GBPm 4m to 31 December 2m to 28/29 February 12m to 28/29 February
-----------------------------
FY20 FY19 yoy yoy FY20 FY19 yoy yoy FY20 FY19 yoy yoy
% % CER % % CER % % CER
------ ------ ---- ------- ------ ------ ---- ------- -------- ------ ---- -------
Total 473.7 328.2 44% 44% 196.3 133.4 47% 48% 1,234.9 856.9 44% 44%
------ ------ ---- ------- ------ ------ ---- ------- -------- ------ ---- -------
Revenue by region
------ ------ ---- ------- -------- -------
UK 255.8 180.0 42% 42% 108.5 74.2 46% 46% 679.4 488.2 39% 39%
------ ------ ---- ------- ------ ------ ---- ------- -------- -------
ROE 69.6 44.4 57% 54% 31.4 19.4 61% 58% 188.4 115.1 64% 62%
------ ------ ---- ------- ------ ------ ---- ------- -------- ------ ---- -------
USA 110.6 70.4 57% 57% 42.3 27.7 53% 62% 263.6 166.3 59% 61%
------ ------ ---- ------- ------ ------ ---- ------- -------- ------ ---- -------
ROW 37.7 33.4 13% 13% 14.1 12.1 17% 14% 103.5 87.3 19% 19%
------ ------ ---- ------- ------ ------ ---- ------- -------- ------ ---- -------
GBPm 3m to 31 May 3m to 31 August 6m to 31 August
---------------------------
FY20 FY19 yoy yoy FY20 FY19 yoy yoy FY20 FY19 yoy yoy
% % CER % % % % CER
CER
------ ------ ---- ------- ------ ------ ---- ----- ------ ------ ---- -------
Total 254.3 183.6 39% 39% 310.5 211.7 47% 47% 564.9 395.3 43% 43%
------ ------ ---- ------- ------ ------ ---- ----- ------ ------ ---- -------
Revenue by region
------ ------ ---- ----- ------ ------ -------
UK 140.6 110.7 27% 27% 174.4 123.3 41% 41% 315.0 234.1 35% 35%
------ ------ ---- ------- ------ ------ ---- ----- ------ ------ -------
ROE 38.2 22.3 72% 71% 49.2 29.0 70% 68% 87.5 51.2 71% 69%
------ ------ ---- ------- ------ ------ ---- ----- ------ ------ ---- -------
USA 51.3 31.4 64% 66% 59.4 36.8 61% 64% 110.7 68.2 62% 65%
------ ------ ---- ------- ------ ------ ---- ----- ------ ------ ---- -------
ROW 24.2 19.2 26% 28% 27.5 22.6 22% 23% 51.7 41.8 24% 25%
------ ------ ---- ------- ------ ------ ---- ----- ------ ------ ---- -------
CER in this appendix for the year ended 29 February 2020 is
calculated using exchange rates prevailing during the year ending
29 February 2020. Nomenclature: ROE - rest of Europe; ROW - rest of
world; yoy - year-on-year; CER - constant exchange rate
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