Boohoo delivers sales growth in line with forecast

Boohoo Group has delivered net sales growth in the fourth quarter of 7 percent and full year increase of 14 percent, in line with guidance.

In the fourth quarter, gross sales growth was 26 percent versus last year and 57 versus two years ago. The company said the net sales growth in the quarter was impacted by higher returns rates year on year due to product mix. It said it expects that to continue in the first half of FY23.

Supply chain disruption

In the UK, the group delivered a strong trading performance, while international performance continued to be impacted by longer customer delivery times as a result of pandemic-related supply chain pressures. However, in the fourth quarter, the group saw a return to growth in ROW due to the positive contribution from wholesale.

Commenting on the preliminary trading update, group CEO John Lyttle said: “The group has delivered strong growth over the last two years, which has translated into significant market share gains. We are confident that pandemic-related headwinds are short-term in their nature, and our focus is to ensure the business is well positioned for growth as these headwinds ease.”

The group expects to report adjusted EBITDA for the financial year ended February 28, 2022 of approximately 125 million pounds, in line with prior guidance issued in December and market expectations.