Fashion retailer Boohoo (BOO) has started to see recovery in trading following the virus-induced shock to demand last month, with year-on-year growth achieved in April. March saw a “marked decrease” in growth and analysts at Peel Hunt expect the group to have seen a sales decline of 40-50 per cent in the opening weeks, as reported by Asos and other peers.
Virus issues aside, the retailer posted an impressive performance last year, with gross profit up by more than 40 per cent to £666m. Its key performance indicators strengthened as active customers, defined as those having shopped in the past 12 months on the website, reached 13.9m, while the number of orders were up by more than a third to 42.2m.
Logistics are key to performance. The two distribution centres in the UK are still operating, with a new automation process strengthening the peak load capacity at its Burnley site. Chief financial officer Neil Catto said that the group has shifted inventory to meet heightened demand for nightwear, leisure and "athleisure" products as a result of the lockdown.
Broker Peel Hunt forecasts adjusted pre-tax profits of £63.7m and EPS of 3p in 2021, compared with £108m and 6p in 2020.
| BOOHOO GROUP (BOO) | ||||
| ORD PRICE: | 287p | MARKET VALUE: | £3.36bn | |
| TOUCH: | 286-288p | 12-MONTH HIGH: | 383p | LOW: 133p |
| DIVIDEND YIELD: | nil | PE RATIO: | 52 | |
| NET ASSET VALUE: | 28p | NET CASH: | £225m* | |
| Year to 29 Feb | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2016 | 0.20 | 15.7 | 1.10 | nil |
| 2017 | 0.30 | 30.9 | 2.20 | nil |
| 2018 | 0.58 | 43.3 | 2.78 | nil |
| 2019** (restated) | 0.86 | 59.9 | 3.78 | nil |
| 2020 | 1.23 | 92.2 | 5.48 | nil |
| % change | +44 | +54 | +45 | - |
| Ex-div: | na | |||
| Payment: | na | |||
| *Netted against lease liabilities of £16.2m **2019 figures have been restated to adjust the non-controlling Interest in PrettyLittleThing.com Limited and restate the basic earnings per share | ||||
