Boohoo “continues to outperform the wider retail market” says Zeus Capital

Boohoo Group has released a brief statement confirming ongoing strong trading across its key brands (boohoo.com, PrettyLittleThing, Nasty Gal and BoohooMAN) and another record-breaking performance over the all-important Black Friday weekend. Confirmation that the Group is trading “comfortably in line with market expectations” (FY20 company complied revenue growth consensus +37.6% YOY), implies growth at the top end of management’s guided 33% to 38% range. We upgrade our forecasts to reflect this, having previously sat at the mid-point of this range and the lower end of consensus. We see scope for history to repeat itself and deliver further upgrades in January, given management’s traditionally cautious stance ahead of peak December trading in contrast to ongoing momentum across the Group’s portfolio of brands.

  • Operational excellence:  Pleasingly, the Group’s operational performance has been strong at both the Burnley and Sheffield warehouses, with Black Friday being the first peak trading period since the automation of the Burnley site went live in late March. Automation should allow the Group to clear high order volumes quickly, allowing it to return promptly to business as usual trading for the key December trading period.
  • Acquisitions: The integration of recently acquired brands including MissPap, Karen Millen and Coast has gone smoothly, with all three brands successfully migrated to the Group’s platform. Karen Millen and Coast relaunched in October and these initial ranges have been well received. The Group is continuing to broaden product ranges, with the number of styles on offer already at levels seen prior to these brands’ entering administration, suggesting a quick and seamless integration into the Group’s supply chain.
  • Forecasts: We nudge our FY20 revenue forecasts higher (c.1.4%) reflecting today’s confirmation that the Group is trading in line with market expectations of revenue growth of 37.6% YOY and an EBITDA margin of c.10%, full detail is presented in Exhibit 1 below. We expect greater colour on the full year outlook in the next trading statement to be released on 14th January 2020 and believe there is potential for further upgrades to guidance, given ongoing momentum across the Group’s portfolio of brands.
  • Valuation:  The Boohoo Group continues to outperform the wider retail market as evidenced by its record Black Friday weekend. It’s track record of operational excellence also remains intact with another seamless peak trading period delivered successfully. We believe boohoo will continue to be an innovator and disruptor at the forefront of the fashion ecommerce market, backed by one of the most experienced and highest quality management teams in the sector and a solid balance sheet with forecast net cash of £260m for FY20.
Click to view all articles for the EPIC: ,
Or click to view the full company profile:
    Share on facebook
    Facebook
    Share on twitter
    Twitter
    Share on linkedin
    LinkedIn
    boohoo Plc

    More articles like this

    OnTheMarket Plc

    OnTheMarket signs exclusive commercial partnership with Sprift Technologies

    OnTheMarket plc (LON:OTMP), the majority agent-owned company which operates the OnTheMarket.com property portal, has announced that it has signed an exclusive commercial partnership with Sprift Technologies Limited, the award-winning property data specialist. The partnership will enable OnTheMarket to provide

    AFC Energy

    AFC Energy: Feedback post Capital Markets Event

    AFC Energy plc (LON:AFC) hosted its maiden Capital Markets Event yesterday, giving an excellent summary of its progress in the last year and its prospects. The company is making good progress in commercialising its EV charging product alongside

    boohoo Plc

    Boohoo Group: FY21 Results

    Boohoo Group plc (LON:BOO) has announced results for the 12 months ended 28 February 2021, reporting a strong finish to the year, with performance ahead of ZC’s forecasts, driven by strong momentum in both the UK and USA

    AFC Energy

    AFC Energy hosting virtual Capital Markets event today

    AFC Energy plc (LON:AFC), a leading provider of hydrogen power generation technologies, will today host a virtual Capital Markets Event for investors and analysts at 2pm BST. To view the webcast, investors should join using the following link:

    boohoo Plc

    Boohoo Group revenue up 41% to £1.745 billion

    Boohoo Group plc (LON:BOO) has announced its final results for the year ended 28 February 2021.   2021 2020 Change   £ million £ million   Revenue 1,745.3 1,234.9 +41% Gross profit 945.2 666.3 +42% Gross margin 54.2%

    Inchcape

    Inchcape: Update to forecasts

    Inchcape plc (LON:INCH) delivered better than expected Q1 results last week and is showing signs of a broad-based recovery across a number of geographies. The Group recently announced its decision to right-size its Russian retail operations with a