boohoo group plc Trading Update (8754B)

TIDMBOO

RNS Number : 8754B

boohoo group plc

12 June 2019

For Immediate Release 12 June 2019

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 three months ended 31 May 2019

Continued strong growth across all brands in all regions

 
                                                          Three months to 31 May 
 GBP million                       FY20                             FY19                         Increase   CER(1) 
                       ----------------  -------------------------------  -------------------------------  ------- 
 Group total revenue              254.3                            183.6                             39 %      39% 
                       ----------------  -------------------------------  -------------------------------  ------- 
 Revenue by region 
  UK                              140.6                            110.7                              27%      27% 
  ROE(2)                           38.2                             22.3                              72%      71% 
  USA                              51.3                             31.4                              64%      66% 
  ROW(3)                           24.2                             19.2                              26%      28% 
                       ----------------  -------------------------------  -------------------------------  ------- 
 

(1) CER designates Constant Exchange Rate translation of foreign currency revenue. (2) ROE is rest of Europe. (3) ROW is rest of world.

Highlights

Group

   --    Revenue GBP254.3 million, up 39% (39% CER(1) ) 
   --    Strong revenue growth across all geographies with UK up 27% and international up 56% 
   --    Gross margin 55.0% (1Q19: 55.2%) 
   --    Strong balance sheet with net cash of GBP194 million (1Q19: GBP151 million) 
   --    Acquired the brand and intellectual property assets of MissPap 

boohoo

   --    Revenue GBP123.5 million up 27% (28% CER), with growth accelerating from last year 
   --    Gross margin 54.1%, (1Q19: 52.0%) 

PrettyLittleThing

   --    Revenue GBP112.1 million up 42% (42% CER), with continued strong growth in all markets 
   --    Gross margin 55.9%, (1Q19: 58.7%) 

Nasty Gal

   --    Revenue GBP18.2 million up 153% (157% CER), with gathering momentum in all markets 
   --    Gross margin 56.1%, (1Q19: 58.9%) 

Guidance

Trading in the first quarter has been strong. At this stage of the year, we continue to expect Group revenue growth to be 25% to 30% with an adjusted EBITDA margin of around 10% for FY20. All other guidance remains unchanged.

John Lyttle, CEO, commented:

"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. 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."

Investor and analyst conference call

boohoo group plc will today host a conference call for analysts and investors at 9.30am (UK time). The dial in details for the call are as follows:

 
 UK Toll Number:    [phone] 
 UK Toll-Free 
  Number:           08003589473 
 Participant pin 
  code:             91533229# 
 

For international access numbers, please click here.

 
 Enquiries 
 
 boohoo group plc 
 Neil Catto, Chief Financial Officer        Tel: [phone] 
 Alistair Davies, Investor Relations        Tel: [phone] 
 Clara Melia, Investor Relations            Tel: [phone] 
 
 Zeus Capital - Nominated adviser 
  and joint broker 
 Nick Cowles/Andrew Jones (Corporate        Tel: [phone] 
  Finance) 
 John Goold/Benjamin Robertson (Corporate   Tel: [phone] 
  Broking) 
 
 Jefferies Hoare Govett - Joint broker 
 Max Jones/Philip Noblet                    Tel: [phone] 
 
 Buchanan - Financial PR adviser            [e-mail] 
 Richard Oldworth/Sophie Wills/Maddie       Tel: [phone] 
  Seacombe 
 

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. For 13 years, 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 and in March 2019 acquired the Miss Pap brand. United by a shared customer value proposition, our brands design, source, market and sell great quality clothes, shoes and accessories at unbeatable prices. This investment proposition has helped us grow from a single brand, into a major multi-brand online retailer, leading the fashion eCommerce market for 16 to 30-year-olds around the world. As at 28(th) February 2019, the boohoo group had around 13 million active customer accounts 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 year to 29 February 2020 (FY20)

 
 GBP'000              3m to 31 May 
           --------------------------------- 
             FY20      FY19     yoy    yoy 
                                 %     % CER 
           --------  --------  ----  ------- 
 Total      254,321   183,561   39%    39% 
           --------  --------  ----  ------- 
 
 Revenue by region 
-------------------------------------------- 
  UK        140,569   110,738   27%    27% 
           --------  --------  ----  ------- 
  ROE        38,252    22,257   72%    71% 
           --------  --------  ----  ------- 
  USA        51,336    31,389   64%    66% 
           --------  --------  ----  ------- 
  ROW        24,164    19,177   26%    28% 
           --------  --------  ----  ------- 
 

Revenue by period for the year to 28 February 2019 (FY19)

 
 GBP'000           4m to 31 December                 2m to 28 February                12m to 28 February 
           ---------------------------------  ------------------------------- 
             FY19      FY18     yoy    yoy      FY19      FY18    yoy    yoy     FY19      FY18     yoy   yoy 
                                 %     % CER                        %      %                         %      % 
                                                                          CER                              CER 
           --------  --------  ----  -------  --------  -------  -----  -----  --------  --------  ----  ----- 
 Total      328,231   228,215   44%    43%     133,375   88,710   50%    50%    856,920   579,800   48%   47% 
           --------  --------  ----  -------  --------  -------  -----  -----  --------  --------  ----  ----- 
 
 Revenue by region 
--------------------------------------------  --------  -------  -----  -----  --------                  ----- 
  UK        179,952   135,642   33%    33%      74,185   56,592   31%    31%    488,199   355,614   37%   37% 

           --------  --------  ----  -------  --------  -------  -----  -----  --------                  ----- 
  ROE        44,431    28,232   57%    54%      19,443   10,258   90%    86%    115,124    66,281   74%   67% 
           --------  --------  ----  -------  --------  -------  -----  -----  --------  --------  ----  ----- 
  USA        70,427    39,618   78%    80%      27,664   13,475   105%   101%   166,262    92,690   79%   81% 
           --------  --------  ----  -------  --------  -------  -----  -----  --------  --------  ----  ----- 
  ROW        33,421    24,723   35%    32%      12,083    8,385   44%    44%     87,335    65,215   34%   30% 
           --------  --------  ----  -------  --------  -------  -----  -----  --------  --------  ----  ----- 
 
 
 GBP'000              3m to 31 May                    3m to 31 August                  6m to 31 August 
           ---------------------------------  ------------------------------- 
             FY19      FY18     yoy    yoy      FY19      FY18     yoy   yoy     FY19      FY18     yoy   yoy 
                                 %     % CER                        %      %                         %      % 
                                                                          CER                              CER 
           --------  --------  ----  -------  --------  --------  ----  -----  --------  --------  ----  ----- 
 Total      183,561   120,077   53%    52%     211,748   142,798   48%   47%    395,309   262,875   50%   49% 
           --------  --------  ----  -------  --------  --------  ----  -----  --------  --------  ----  ----- 
 
 Revenue by region 
--------------------------------------------  --------  --------  ----  -----  --------                  ----- 
  UK        110,738    74,532   49%    49%     123,319    88,849   39%   39%    234,057   163,381   43%   43% 
           --------  --------  ----  -------  --------  --------  ----  -----  --------                  ----- 
  ROE        22,257    12,220   82%    71%      28,993    15,571   86%   73%     51,250    27,791   84%   72% 
           --------  --------  ----  -------  --------  --------  ----  -----  --------  --------  ----  ----- 
  USA        31,389    17,906   75%    78%      36,782    21,690   70%   71%     68,171    39,596   72%   74% 
           --------  --------  ----  -------  --------  --------  ----  -----  --------  --------  ----  ----- 
  ROW        19,177    15,419   24%    22%      22,654    16,688   36%   31%     41,831    32,107   30%   27% 
           --------  --------  ----  -------  --------  --------  ----  -----  --------  --------  ----  ----- 
 

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June 12, 2019 02:00 ET (06:00 GMT)