Bohoo profits surge led by strong sales at PrettyLittleThing, Nasty Gal brands
Source - SMW
Online retailer Bohoo Group reported a jump in pre-tax profits on the strong growth of brands including PrettyLittleThing and Nasty Gal.
For 12 months to 28 February 2019, pre-tax profits rose 38% to £59.9m and revenue jumped 48% to £856.9m. That was above guidance given in January, for revenue growth of between 43% and 45%.
The performance was driven by strong growth of PrettyLittleThing and Nasty Gal brands, with revenues up 107% and 96%, respectively. The Boohoo brand generated revenue of £434.6m up 16%.
Revenue growth was led by the USA and Rest of Europe with growth of 81% and 67%, respectively, while the UK generated 37% growth and rest of world 30%.
Trading in the first few weeks of the financial year has been encouraging and group revenue growth for the financial year was expected to be 25% to 30% with an adjusted EBITDA margin of around 10% and capital expenditure in the region of £50 to £60m, the company said.
'We believe that the benefits of our multi-brand platform will continue to generate economies of scale, allowing us to target sales growth of 25% per annum, with an adjusted EBITDA margin of around 10% over the medium term,' the company added.