Trading Update

RNS Number : 5087L

boohoo.com plc

12 January 2016

 

For Immediate Release                                                                 12 January 2016

boohoo.com plc - trading update for the four months to 31 December 2015

"The Global Fashion Leader for a Social Generation"

	Four months to 31 December				Ten months to 31 December
£'000s	FY15	FY14	Increase	CER(1)	FY15	FY14	Increase	CER
Total sales	73,692	50,793	45%	49%	164,477	117,991	39%	43%
Sales by region
UK	49,701	34,179	45%	45%	108,830	79,784	36%	36%
ROE	8,588	6,464	33%	44%	18,991	15,183	25%	39%
ROW	15,403	10,150	52%	63%	36,656	23,024	59%	70%

Highlights for the four months to 31 December 2015

·     Revenue up 45% (49% CER⁽¹⁾)

o  UK up 45%

o  Rest of Europe up 33% (44% CER)

o  Rest of world up 52% (63% CER)

·     Retail gross margin 57.0%, down 290bps on prior year driven by planned investments in price and customer proposition: marketing expenditure reduced as a percentage of sales, offsetting retail margin decline

·     Overall gross margin 55.7% reflecting growth in third party sales

·     3.9m active customers⁽²⁾, up 33% on prior year

·     £58.7m cash on balance sheet

(1): CER designates Constant Exchange Rate translation of foreign currency revenue

(2): Active customers defined as having shopped in the last 12 months

Mahmud Kamani and Carol Kane, joint CEOs, commented:

"Trading in the four months to 31 December 2015 has been very encouraging across all regions, with overall revenue growth of 45% (49% CER). We have continued to optimise the mix of promotional and marketing spend to drive strong retail growth, reducing the proportion of marketing expenditure, offsetting the 290bps decline in retail gross margin, which includes the adverse impact of exchange rate movements. Gross margin has also been impacted by 130bps due to the growth in third party sales.

Our investments in the customer proposition have resulted in higher conversion rates, increased order frequency and lower customer acquisition costs. Operational successes include the new warehouse extension entering into full service, giving us the capacity required for business expansion, and the new UK app, which has improved the overall shopping experience.

We remain confident of trading in the remaining two months of the financial year and now expect revenue growth for the full year to be marginally above previous guidance of 30% to 35%.  We are trading in line with current market expectations for EBITDA as we continue to invest in driving growth and building market share across our key markets."

Analyst/Investor conference call:

boohoo.com will host a conference call for analysts and investors at 9.15am (UK time) today.  Dial in details:

 From rest of world:         [phone]

 From UK (toll free):        0808 237 0040

 Participant Pass Code:   53097951#

Enquiries

boohoo.com plc Mahmud Kamani, Joint Chief Executive Carol Kane, Joint Chief Executive Neil Catto, Chief Financial Officer	c/o Buchanan Tel: [phone]
Buchanan - Financial PR adviser Richard Oldworth Helen Chan Gabriella Clinkard	Tel: [phone] [e-mail]
Zeus Capital - Nominated adviser and joint broker Nick Cowles Andrew Jones John Goold	Tel: [phone] Tel: [phone]
Jefferies Hoare Govett - joint broker Nick Adams Max Jones	Tel: [phone]

About boohoo.com

"24/7 Global Fashion"

Keeping one step ahead of the trends or making a subtle style change is easy with boohoo.com and with up to 100 pieces hitting the site every day and a new collection each week, boohoo.com never stops - it's 24/7 fashion at its best.

From the UK's best kept fashion secret to one of the fastest growing own-brand, international etailers, boohoo.com has quickly evolved into a global fashion leader of its generation.  Combining cutting-edge, aspirational design with an affordable price tag, boohoo.com has been pushing boundaries since 2006 to bring its customers all the latest looks for less.

www.boohoo.com	www.boohoo.com/newz/page/home	fr.boohoo.com
www.boohoo.com/europe/page/home	www.boohoo.com/sweden/page/home	de.boohoo.com
www.boohoo.com/usa/page/home	www.boohoo.com/denmark/page/home	it.boohoo.com
www.boohoo.com/canada/page/home	www.boohoo.com/norway/page/home	nl.boohoo.com
www.boohoo.com/aus/page/home		es.boohoo.com

Appendix - prior period revenues

Revenue by period for the ten months to 31 December 2015

£'000s	Q1				Q2				H1
	FY16	FY15	yoy %	yoy % CER	FY16	FY15	yoy %	yoy % CER	FY16	FY15	yoy %	yoy % CER
Total	41,322	30,659	35%	37%	49,462	36,538	35%	40%	90,784	67,197	35%	39%
Sales by region
UK	26,273	20,686	27%	27%	32,855	24,919	32%	32%	59,128	45,605	30%	30%
ROE	4,943	3,891	27%	45%	5,460	4,828	13%	26%	10,403	8,719	19%	34%
ROW	10,106	6,082	66%	70%	11,147	6,791	64%	81%	21,253	12,873	65%	75%

£'000s	4m to 31 December				10m to 31 December				2m to 28 February	12m to 28 February
	FY16	FY15	yoy %	yoy % CER	FY16	FY15	yoy %	yoy % CER	FY15	FY15
Total	73,692	50,793	45%	49%	164,477	117,991	39%	43%	21,861	139,851
Sales by region
UK	49,701	34,179	45%	45%	108,830	79,784	36%	36%	14,558	94,342
ROE	8,588	6,464	33%	44%	18,991	15,183	25%	39%	2,903	18,086
ROW	15,403	10,150	52%	63%	36,656	23,024	59%	70%	4,400	27,423

Nomenclature: ROE - rest of Europe; ROW - rest of world; yoy - year-on-year; CER - constant exchange rate

 

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