Boohoo Group PLC (AIM:BOO) said it expects to report profits in line with guidance and market expectations for the year to end-February 2022 following a strong trading performance in the UK and a return to growth in the rest of the world (ROW) in the final quarter.
The online fashion retailer forecast full-year adjusted EBITDA of around £125mln, after net sales grew 14% on the previous year and 61% compared with two years ago.
In a trading update, the group said net sales rose by 7% in the fourth quarter of FY22 and by 48% on the same three-month period two years before, in line with guidance.
Boohoo noted that, as expected, net sales growth in the quarter was hit by higher returns rates year-on-year due to product mix, which is expected to continue in the first half of the current year.
Gross sales grew 26% compared with last year and 57% versus two years ago.
Supply chain challenges continue to impact the group’s international performance in the form of longer customer delivery times. However, the ROW business saw a return to growth in the fourth quarter on the back of a positive contribution from wholesale.
"The group has delivered strong growth over the last two years, which has translated into significant market share gains,” commented John Lyttle, group CEO.
“We are confident that pandemic-related headwinds are short-term in their nature, and our focus is to ensure the business is well positioned for growth as these headwinds ease."