Boohoo records half-year revenue growth of 45%

Boohoo has recorded a 45% year-on-year growth in revenue in the six months ended 31 August 2020, while pre-tax profit for the group surged by 51%. This is despite facing “some of its most challenging times in recent months” owing to the Covid-19 pandemic and the damaging allegations around the poor treatment of garment factory workers in Leicester in the UK.

The eCommerce fashion group, which owns Boohoo, Pretty Little Thing, Nasty Gal, Coast, Karen Millen, and Oasis and Warehouse, has been able to respond strongly to the shift to online shopping that has taken place during the Covid-19 pandemic.

In the six-month period, Boohoo also made substantial strides to expand its portfolio, raising £197.7 million in share placings in May to quickly take advantage of new merger & acquisition (M&A) opportunities in the fashion sector. It also took full ownership of Pretty Little Thing and acquired Oasis and Warehouse.

In the trading update, Boohoo added that it expects revenue for the year to 28 February 2021 to increase by between 28% and 32%. It also said that capital expenditure will be higher than previously anticipated in the second half due to investments into automation at two of its facilities and IT projects “to support the growth of the business and improve efficiency”.

John Lyttle, CEO of Boohoo commented: “There are many challenges still ahead due to uncertainties posed by the COVID-19 pandemic, but despite these challenges there are many positives from our activities in the first half. The resilience of our business model and the commitment and flexibility of our colleagues and partners has enabled us to continue to operate our business successfully. We are grateful to all and pleased to be able to report a strong performance with continued high growth rates in revenue and strong profitability.”

Last week, the online group published a response to the findings of the independent review into practices in its supply chain, outlining a range of steps it will take to “effect real change in the Leicester textile industry”.