Trading Update

RNS Number : 7225T

boohoo.com plc

10 January 2017

 



For Immediate Release                                                                 10 January 2017

boohoo.com plc - trading update for the four months to 31 December 2016

"The voice and style of the social generation"

	Four months to 31 December				Ten months to 31 December
£'000s	FY17	FY16	Increase	CER(1)	FY17	FY16	Increase	CER
Total sales	114,294	73,692	55%	52%	241,610	164,476	47%	46%
Sales by region
UK	65,015	49,701	31%	31%	146,711	108,829	35%	35%
ROE	13,963	8,588	63%	54%	28,676	18,991	51%	47%
USA	19,649	5,962	230%	188%	34,875	13,864	152%	130%
ROW	15,667	9,441	66%	57%	31,348	22,792	38%	40%

Highlights for the four months to 31 December 2016

·     Revenue up 55% (52% CER⁽¹⁾)

o  UK up 31%, rest of Europe up 63% (54% CER), USA up 230% (188% CER), rest of world up 66% (57% CER)

·     Gross margin 53.1%, down 260bps (Retail gross margin 54.4%, down 260bps due to planned investment in price and promotions)

·     Broader product range driving growth, launch of kids wear

·     5.1m active customers⁽²⁾, up 31% on prior year

·     Acquisition of PrettyLittleThing completed on 3 January 2017

·     Strong balance sheet with net cash of £69m

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

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

Mahmud Kamani and Carol Kane, joint CEOs, commented:

"Trading in the four months to 31 December 2016 has been strong across all regions. Our strategy offering great pricing, enticing promotions and an ever-broader range of the latest fashion continues to drive growth and enhance customer lifetime value. In particular, sales momentum in the USA has continued robustly, helped by our strong customer proposition across the Black Friday weekend.

We are delighted to have completed the acquisition of a majority stake in PrettyLittleThing on 3 January 2017 and we welcome the team to the enlarged boohoo.com group. This is a fantastic brand to complement boohoo.com's own brand, and we look forward to building on its success.

Progress is being made towards a further warehouse extension at Burnley to support growth in the longer term and investment in our IT infrastructure continues. The USA website was moved to a new platform in October and our mobile Apps in the UK and internationally continue to grow in popularity.

As a result of the strong trading through Black Friday continuing into the Christmas season, we now expect revenue growth for boohoo.com (excluding PrettyLittleThing) to be between 43% and 45% in the year to 28 February 2017, above previous guidance of between 38% and 42%. As previously announced, PrettyLittleThing is expected to achieve revenue growth in excess of 150% for the year to 28 February 2017 (FY16 revenue: £17.0m), while being broadly breakeven at EBITDA level. Consequently, group revenue growth, including PrettyLittleThing, is expected to be between 46% and 48% and group EBITDA margin between 11% and 12%."

Investor and Analyst conference call

boohoo.com will host a conference call for analysts and investors at 8.30am (UK time) today. Dial in details:

Tollfree/Freephone:	0800 358 6377
Local:	[phone]
Conference ID:	6375640

Enquiries

boohoo.com plc Neil Catto, Chief Financial Officer Clara Melia, Investor Relations	Tel: [phone] Tel: [phone]
Zeus Capital - Nominated adviser and joint broker Nick Cowles/Andrew Jones (Corporate Finance) John Goold/Benjamin Robertson (Corporate Broking)	Tel: [phone] Tel: [phone]
Jefferies Hoare Govett - Joint broker Nick Adams/Max Jones	Tel: [phone]
Buchanan - Financial PR adviser Richard Oldworth/Madeleine Seacombe/ Jane Glover	Tel: [phone] [e-mail]

About boohoo.com

"The voice and style of the social generation"

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

From the UK's best kept fashion secret to one of the fastest growing international retailers, 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
us.boohoo.com	www.boohoo.com/denmark/page/home	it.boohoo.com
ca.boohoo.com	www.boohoo.com/norway/page/home	nl.boohoo.com
www.boohoo.com/aus/page/home	fi.boohoo.com	es.boohoo.com
www.boohooman.com

About PrettyLittleThing

Founded in 2012, PrettyLittleThing originated as an accessories only website. It soon saw that its customers wanted to buy top to toe outfits and introduced a clothing range in 2013. Since then PLT has grown into a forward-thinking fashion brand offering killer affordable style to female fashion breakers and makers. The business is all about the right here, right now. PLT doesn't just anticipate trends; it creates them, taking inspiration from the catwalk, celebrities, and influencers, making sure they're available for the customer to shop on PLT's site before they are available anywhere else.

www.prettylittlething.com	ie.prettylittlething.com
www.prettylittlething.us
www.prettylittlething.com.au

Appendix - prior period revenues by region

Revenue by period for the ten months ended 31 December 2016

£'000s	3m to 31 May				3m to 31 August				6m to 31 August
	FY17	FY16	yoy %	yoy % CER	FY17	FY16	yoy %	yoy % CER	FY17	FY16	yoy %	yoy % CER
Total	58,222	41,322	41%	42%	69,094	49,462	40%	40%	127,316	90,784	40%	41%
Sales by region
UK	37,396	26,273	42%	42%	44,300	32,855	35%	35%	81,696	59,128	38%	38%
ROE	6,938	4,943	40%	43%	7,775	5,460	42%	40%	14,713	10,403	41%	41%
USA	6,385	3,815	67%	60%	8,841	4,086	116%	100%	15,226	7,901	93%	81%
ROW	7,503	6,291	19%	27%	8,178	7,061	16%	27%	15,681	13,352	17%	27%

£'000s	4m to 31 December				10m to 31 December
	FY17	FY16	yoy %	yoy % CER	FY17	FY16	yoy %	yoy % CER
Total	114,294	73,692	55%	52%	241,610	164,476	47%	46%
Sales by region
UK	65,015	49,701	31%	31%	146,711	108,829	35%	35%
ROE	13,963	8,588	63%	54%	28,676	18,991	51%	47%
USA	19,649	5,962	230%	188%	34,875	13,864	152%	130%
ROW	15,667	9,441	66%	57%	31,348	22,792	38%	40%

Revenue by period for the year to 29 February 2016

£'000s	3m to 31 May				3m to 31 August				6m to 31 August
	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%
USA	3,815	1,485	157%	143%	4,086	1,382	196%	181%	7,901	2,867	176%	161%
ROW	6,291	4,597	37%	48%	7,061	5,409	31%	55%	13,352	10,006	33%	52%

£'000s	4m to 31 December				2m to 29 February				12m to 29 February
	FY16	FY15	yoy %	yoy % CER	FY16	FY15	yoy %	yoy % CER	FY16	FY15	yoy %	yoy % CER
Total	73,692	50,793	45%	49%	30,918	21,861	41%	40%	195,394	139,851	40%	42%
Sales by region
UK	49,701	34,179	45%	45%	21,267	14,558	46%	46%	130,096	94,342	38%	38%
ROE	8,588	6,464	33%	44%	3,639	2,903	25%	20%	22,630	18,086	25%	35%
USA	5,962	2,639	126%	116%	2,659	1,504	77%	63%	16,523	7,009	136%	123%
ROW	9,441	7,511	26%	41%	3,353	2,895	16%	17%	26,145	20,414	28%	42%

CER in this appendix for the year ended 29 February 2016 is calculated using exchange rates prevailing during the year ending 29 February 2016.

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

This announcement has been determined to contain inside information. 

Cautionary Statement

Certain statements included or incorporated by reference within this announcement may constitute "forward-looking statements" in respect of the group's operations, performance, prospects and/or financial condition. Forward-looking statements are sometimes, but not always, identified by their use of a date in the future or such words and words of similar meaning as "anticipates", "aims", "due", "could", "may", "will", "should", "expects", "believes", "intends", "plans", "potential", "targets", "goal" or "estimates". By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions and actual results or events may differ materially from those expressed or implied by those statements. Accordingly, no assurance can be given that any particular expectation will be met and reliance should not be placed on any forward-looking statement. Additionally, forward-looking statements regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. No responsibility or obligation is accepted to update or revise any forward-looking statement resulting from new information, future events or otherwise. Nothing in this announcement should be construed as a profit forecast. This announcement does not constitute or form part of any offer or invitation to sell, or any solicitation of any offer to purchase any shares or other securities in the Company, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or commitment or investment decisions relating thereto, nor does it constitute a recommendation regarding the shares or other securities of the Company. Past performance cannot be relied upon as a guide to future performance and persons needing advice should consult an independent financial adviser. Statements in this announcement reflect the knowledge and information available at the time of its preparation. Liability arising from anything in this announcement shall be governed by English law. Nothing in this announcement shall exclude any liability under applicable laws that cannot be excluded in accordance with such laws.

 

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