The Group has raised its Full-Year forecasts after a stellar H1 17.
Companies: boohoo group Plc
Boohoo (LON: BOO) has released its Interims for the six months to August 2017 today, outlining the continued significant growth of the Group.
The online retailer has reported strong growth across all of the Company's brands including boohoo, Nasty Gal, and the recently acquired PrettyLittleThing.
Group revenue is up 106% to £270m and Gross Profit is up 99% to £140m. Adjusted EBITDA was £27.8m, an increase of 68% and Profit Before Tax was £20.3m, an increase of 41%.
Management has increased its Full-Year forecasts, commenting:
"The group's revenue growth is now expected to be around 80%, up from our previous guidance of around 60%. Revenue growth from the boohoo brand is expected to be at the upper end of previous guidance at around 30%. Revenue growth from the PrettyLittleThing brand is now expected to be 150%."
The balance of the group's growth will come from the Nasty Gal brand.
They also upgraded their EBITDA forecasts:
"We now expect group adjusted EBITDA margins to be between 9% and 10%."
Management attributed the Group's significant growth to its international operations, in particular in the USA where growth was 160% and now represents 15% of total group sales, the largest outside the UK.
Zeus Capital has increased their Full Year forecasts for the Group, commenting:
"Our FY18 group sales estimate increases by 12.3% to £530.5m (£472.5m), implying 80.1% YoY growth. Our FY18 adj. EBITDA forecast increases by 4.7% to £50.7m (£48.4m). This equates to a margin of 9.5%, again in line with guidance. We also see sales upgrades in FY19 of c.14% and c.5% to sales and EBITDA respectively."
Singers also put out a note on the Group, saying:
"The higher sales forecast may not yield upgrades today, or at the very most 5%. Pending further clarity on this and insight into important platform and warehousing changes we make no alterations to our target price and maintain a hold recommendation."
Shares in the Group were trading down 7% this morning, which could mean a couple of things - investors are profit taking, and/or the market was expecting the Group to report a stronger set of interims.
Either way, Boohoo's market cap of c. £3bn means they trade at a PE ratio of 76x versus the industry median of 19x.
