Boohoo announces 40% rise in full-year revenue
Boohoo.com, the young British fashion etailer, saw revenue increase by an impressive 40% to £195.3m in the year to February 29, 2016.
Sales in the UK rose by 38% in the period, while sales in the rest of Europe were up 25% and sales in the rest of the world increased by 56%. A third, 33%, of the company's revenue is now generated outside the UK. Gross margin was down 300 basis points to 57.8%, and adjusted EBITDA rose 32% to £18.7m. The company ended the year with a strong balance sheet with cash of £58.3m and no debt.
Boohoo now has more than 4m active customers, a 34% year-on-year increase. It launched apps for the UK, US and Australia in the period and saw international growth accelerate through a focus on key markets.
Mahmud Kamani and Carol Kane, joint CEOs, commented: "We are pleased to report a year of strong revenue growth across all geographic regions. Active customer numbers, order frequency and conversion have all increased on last year as we continue to invest in building customer lifetime value. By refining the mix of promotional and marketing expenditure in each of our key markets, we have achieved growth ahead of our plans.
The expansion of our product range has been very well received by our customers and contributed to the strong growth, with the new petite range performing very well along with plus-size which was introduced last year and continues to grow rapidly.
We have enhanced the mobile experience through new apps in UK, USA and Australia as well as introducing more flexible delivery and return options and later next day delivery cut off times."
The CEOS added that Boohoo has had an "encouraging start to the 2017 financial year" and is currently anticipating sales growth of c.25% for the financial year, in line with current market expectations.
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