Following today’s release of boohoo group Q3 figures for FY2019/20, Emily Salter, retail analyst at GlobalData, a leading data and analytics company, comments: ‘‘Darling of UK retail, the boohoo group has raised its group revenue growth expectations for FY2019/20 once again to 40-42% (ahead of previous guidance of 33-38%) after an exceptionally strong third quarter where it has yet again far outperformed the online clothing & footwear market. It also announced that group adjusted EBITDA margin will be slightly ahead of previous expectations at 10%- 10.2%. This evidences the strength of its key brands in particular, as they continue to resonate with their young shoppers to deliver enviable revenue growth.
“The group delivered a record performance across the Black Friday weekend, stating that trading was strong across the key brands and demonstrating that demand was not dampened by frequent discounts throughout the last few months of 2019. Boohoo.com in particular had an impressive Black Friday and festive period, with Q3 revenue growth accelerating significantly on last year, with year to date revenue growth of 38%, proving that despite the brand’s maturity it is still able to attract more shoppers and greater spend from existing customers, by promoting its low prices and niche sizing collections. PrettyLittleThing’s Q3 sales rose by 32% slowing in comparison to its year to date performance with revenue up by 37%, just behind that of boohoo.com.
“The group has stated that its newest acquisitions (MissPap, Karen Millen and Coast) are “showing great promise” with initial ranges being well received, although combined the brands only accounted for 1.9% of group revenue. Karen Millen and Coast in particular give the group access to significantly different target customers in comparison to the rest of the boohoo group’s brands, but it must be careful to retain their premium images which are at risk given these brands have already started to offer frequent 25% off promotions. Although steep discounts have come to be expected from young fast fashion brands, boohoo.com and PrettyLittleThing, it should not be the case with more premium brands where higher price points signify quality and unique design handwriting.”