- British fast-fashion retailer Boohoo posted a 44% jump in revenue for the year ending February 2020, proving its resilience in a tough business environment.
- Sales for the online fashion powerhouse grew year-on-year in the last few weeks of March, helped by better weather and the Easter holiday in the UK.
- The online retailer is well-positioned in the retail space compared to its competitors as a result of an evolving product model and notable promotions.
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British fast-fashion powerhouse Boohoo Plc said it was “well-placed to continue to disrupt fashion markets around the world” after posting better-than-expected sales for the year ended February 2020.
The group, which also owns PrettyLittleThing and Nasty Gal, ended the year with a 44% jump in sales to £1.2 billion ($1.5 billion).
“Our business is founded on our ability to be agile and flexible and it is at times like this when these abilities are tested,” John Lyttle, the online retailer’s chief executive said in a statement to investors. “I am proud of how our colleagues and business partners from around the world have responded to the challenges posed by this pandemic.”
Analysts at Jefferies said Boohoo’s social media expertise has led it to create innovative content for customers in lockdown and praised its performance that proved it was “thriving, not just surviving.”
“Boohoo is not immune from the wider macro-economy but they are, arguably, more resilient,” analysts at Jefferies said in a recent note to clients. Moreover, the online marketplace is poised to gain considerable market share during the lockdown and beyond, they said.
As consumers spend considerable amounts of time on social media they expect this to play to Boohoo’s strengths and help with retaining customers once stores reopen. Boohoo also has the ability to look for expansion opportunities, they said, and protect its business with £241 million ($297 million) net cash in its balance sheet and a monthly cash burn of under £10 million ($12.3 million).
Sales of the online fashion specialist were dwindling in the middle of March as a direct consequence of the COVID-19 outbreak, before performance improved in the last three weeks. The company has adapted its product range to include more leisurewear, athleisure, and nightwear.
Boohoo also said its warehouse teams adapted to new ways of working after it introduced social distancing procedures.
Relative to competitors such as Primark, Arcadia, New Look, Matalan, and River Island, Boohoo has so far paved the way for a thriving online business in the midst of a distressful pandemic.
As of 29 February 2020, the Boohoo group had around 14 million active customers across all its brands around the world.