If Boohoo.com's (BOO) share price performance since the start of the year is any indication, the market is learning to trust the fast-fashion etailer again. The latest set of annual results from the Aim-traded group suggest things are headed in the right direction. Revenues soared by 40 per cent as active customers increased by just over a third, following the launch of new mobile and tablet apps in the UK, US and Australia.
However, gross margins fell by 300 basis points as the group continues to cut prices and invest in promotions and next-day delivery, as it strives to maintain its competitive position in the industry. But chief financial officer Neil Catto says profit margins started to strengthen in the second half of the year, as temptingly low prices meant the group hadn't needed to spend money on marketing in order to drive customers to the website. It's hoped margins will continue this improvement in the current period.
Analysts at Peel Hunt expect pre-tax profits of £21.8m for the year to February 2017, giving EPS of 1.5p, compared with £15.7m and 1.1p in FY2016.
| BOOHOO.COM | ||||
|---|---|---|---|---|
| ORD PRICE: | 48.3p | MARKET VALUE: | £542m | |
| TOUCH: | 48-48.5p | 12-MONTH HIGH: | 52p | LOW: 23p |
| DIVIDEND YIELD: | NIL | PE RATIO: | 43 | |
| NET ASSET VALUE: | 6.5p | NET CASH: | £58.3m | |
| Year to 29 Feb | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 29.0 | 0.2 | na | na |
| 2013 | 67.3 | 3.2 | na | na |
| 2014 | 110 | 10.7 | 0.8 | nil |
| 2015 | 140 | 11.1 | 0.8 | nil |
| 2016 | 195 | 15.7 | 1.1 | nil |
| % change | +40 | +42 | +48 | - |
Ex-div: na Payment: na | ||||
