Boohoo Group’s revenue jumps 45% in the fiscal first half

Written by: Wajeeh Khan
September 30, 2020
  • Boohoo Group’s revenue jumps 45% in the fiscal first half.
  • The fashion retailer reports £68.1 million of pre-tax profit.
  • Boohoo Group did not declare a dividend for the period.

Boohoo Group plc (LON: BOO) said on Wednesday that its pre-tax profit in the first six months of the current fiscal year came in higher than the same period last year, on the back of significant growth in revenue. The company said its performance in the fiscal second half was showing resilience to date as it raised its guidance for annual revenue on Wednesday.

Boohoo Group slid 2% in premarket trading on Wednesday and lost another 2% on market open. Including the price action, it is now trading at £3.72 per share. Shares of the company had tanked to as low as £1.57 in mid-March when the impact of the COVID-19 crisis was at its peak.

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In comparison, Boohoo had started the year 2020 at close to £3.0 per share in the stock market. Learn more about how to choose winning stocks.

Boohoo reports £68.1 million of pre-tax profit in H1

In the six months that concluded on 31st August, Boohoo Group reported £68.1 million of pre-tax profit versus the year-ago figure of a much lower £45.2 million. In terms of revenue, the clothing retailer recorded £816.5 million in the first half that represents a 45% year over year growth. The company said that signs of recovery were evident in all of its brands and across all regions.

As per Boohoo Group:

“Group revenue growth for the year to February 28th, 2021 is expected to be 28% to 32%, up from approximately 25% as previously guided.”

The company forecasts its adjusted EBITDA (earnings before interests, tax, depreciation, and amortization) at close to 10% for the full financial year. Boohoo was accused of paying its workers illegally low wages in July.

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Boohoo did not declare a dividend for the period

Much like its competitors, the Manchester-based company saw a hit to its performance earlier in 2020 due to the Coronavirus pandemic that has so far infected more than 400 thousand people in the United Kingdom and caused over 42 thousand deaths.

Boohoo’s board did not declare a dividend for the period on Wednesday. The online fashion retailer was reported seeking dismissal for a £78 million pricing case from a Los Angeles court.

The UK-based company performed largely upbeat in the stock market last year with an annual gain of more than 85%. At the time of writing, Boohoo Group is valued at £4.68 billion and has a price to earnings ratio of 69.43.