Boohoo Group’s revenue climbs by 32% in fiscal Q1

By: Wajeeh Khan
Wajeeh Khan
Wajeeh is an active follower of world affairs, technology, an avid reader, and loves to play table tennis in… read more.
on Jun 15, 2021
  • Boohoo Group's revenue jumps to £486.1 million in the first quarter.
  • The retailer expects adjusted EBITDA margin of up to 10% this year.
  • Boohoo Group is about 2% down year-to-date in the stock market.

Boohoo Group plc (LON: BOO) said on Tuesday its revenue climbed by 32% in its fiscal first quarter as COVID-19 restrictions started to ease on the back of vaccine rollouts. The company also reaffirmed its outlook for the full year.

Boohoo shares tanked about 1.5% on market open on Tuesday but gained 2% later on to trade at 333 pence per share. In comparison, the stock had started the year at a higher 340 pence per share.

Boohoo Group reported £486.1 million of revenue

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Boohoo Group reported £486.1 million of revenue in the quarter that concluded on 31st May. In Q1 of the previous year, its revenue was capped at a lower £367.8 million. Gross margin, the fashion retailer added, tanked 60 basis points in the first quarter to 55%. Compared to 2019, the London-listed company’s revenue was up 91%.

The news comes a month after Boohoo Group said its pre-tax profit surged by 35% in fiscal 2021. The stock performed fairly upbeat last year, with an annual gain of a little under 15%. At the time of writing, the Manchester-based company has a market cap of £4.20 billion and a price to earnings ratio of 45.80.

In separate news from the United Kingdom, On the Beach Group plc said its pre-tax loss narrowed in H1 of 2021.

Boohoo Group reaffirms its guidance for the full year

The British firm expressed confidence that it has started the year on a positive note and reiterated its guidance for fiscal 2022. Boohoo expects a year over year growth of about 25% in revenue. It expects adjusted EBITDA (earnings before interest, taxes, depreciation and amortisation) margin to stand at 9.5% to 10% this year. As per Peel Hunt analysts:

“Interestingly, Boohoo has seen dresses mix move from 12% to 30% of sales over recent weeks (which is higher than pre-pandemic), giving us confidence in the view that there will be a strong apparel trade back in normality for consumers. Performance should be more weighted to the second half, and we note that comparatives remain particularly tough over the second quarter.”

According to the online fashion company, its key markets, the United Kingdom and the United States, saw a 50% and a 43% growth in Q1, respectively. Performance in the rest of the world, on the other hand, slipped 15% with the rest of Europe down 14%. Boohoo Group had £199 million of cash at the end of the recent quarter.

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