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Boohoo Group raises full-year revenue forecast but warns on economic uncertainty

In the six months to August 31, revenue climbed 45% to £816mln for profit before tax up 51% to £68mln

Boohoo Group PLC - Boohoo Group raises full-year revenue forecast but warns on economic uncertainty

Boohoo Group PLC (LON:BOO) raised full-year revenue and margin forecasts but continues to plan for a period of economic uncertainty.

The fast-fashion giant expects possible reduced consumer spending, online shopping returning to normal levels after the boom during lockdown, continued near-term carriage inflation in some of its overseas markets and likely higher marketing spend in the second half.

READ: Boohoo vows to rectify failings but margins remain a question

However, group revenue growth for the year to February 28 is expected to be 28-32%, up from 25% as previously guided, with adjusted underlying (EBITDA) margin for the year at around 10%, increased from the 9.5-10% previously expected.

Capital expenditure is expected to be higher than previously anticipated, at £80-100mln, reflecting investments into automation at the Sheffield and Burnley facilities as well as IT projects to support the growth of the business and improve efficiency.

The AIM-listed clothier did not add further comments about the independent review on its governance policy published on Friday, noting all its actions to implement the recommendations have been announced last week.

In the six months to August 31, revenue climbed 45% to £816mln for profit before tax up 51% to £68mln.

The Karen Millen and Oasis owner said trading was buoyed by consumers migrating to online shopping during lockdown and higher momentum and market share in the US.

"Boohoo’s shares have bounced back strongly since last week’s supply chain report was published," analysts at Peel Hunt noted.

"With an ESG action plan in place to be measured against, combined with a strengthening market position, the shares will continue to outperform in our view."

Shares slipped 3% to 380p on Wednesday morning.

--Adds analyst comment, shares--

Quick facts: Boohoo Group PLC

Price: 278 GBX

AIM:BOO
Market: AIM
Market Cap: £3.52 billion
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