Boohoo sales bounce back after initial slump due to virus

Online fashion retailer Boohoo today admitted that is suffered a "marked" fall in sales last month as the coronavirus crisis struck, but revenues swiftly rebounded in April.

The group - which also owns brands including PrettyLittleThing and NastyGal - said the recent Covid-19 events overshadowed a "great" financial year, with sales falling sharply year-on-year last month.

But the firm stressed it is seeing improved year-on-year growth of group sales during April thanks to a recent bounce-back.

Boohoo has outshone its High Street rivals over the last year as snappy social media advertising campaigns have drawn in new customers. It has also benefitted from consumers increasingly shopping online over physical stores, a trend which is likely to accelerate due to the lockdown.

Non-essential stores were ordered to shut last month and footfall is expected to be down sharply even when shops are allowed to reopen due to social distancing measures.

Boohoo reported a 54% jump in pre-tax profits to £92.2 million for the year to February 29 as sales raced 44% higher. The shares rose 7% to 290p.

The company warned that the virus still represented a risk to demand, and warehouses could be forced to close. It has cut its financial guidance for the year.

John Lyttle, chief executive of Boohoo, said: "Whilst recent events have understandably overshadowed what has been a great year for Boohoo, they have also highlighted its key strengths.

"Although there is near-term uncertainty in the markets that we operate in, the group is underpinned by its incredibly strong balance sheet and is well-placed to leverage its scalable multi-brand platform and to continue to disrupt fashion markets around the world."

Annual sales lifted 39%, while its international operations showed an impressive 62% rise in Europe, a 61% hike in the US and a 19% increase around the rest of the world.

Its main Boohoo brand saw sales rise 39% to nearly £601,000, while sales more than doubled at Nasty Gal and rose 37% at PrettyLittleThing.

The group's recently acquired fashion brands Karen Millen, Coast and MissPap put in an encouraging performance, with revenues of £19 million according to the group.