Online Retailer Boasts 36-38% Growth Expectation and Continued Supply Chain Improvements

  • Boohoo’s revenue soars by 40% to £661m in Q4
  • Group expects group revenue growth for FY21 to be 36-38%, ahead of previous guidance of 28-32%
  • Medium-term guidance remains at 25% sales growth per annum and a 10% adjusted EBITDA margin
  • Boohoo makes progress with Agenda for Change programme launched after scandal revelations
  • First report from Sir Brian Leveson acknowledges pace of change, but notes recommendations are work in progress
  • 64 suppliers removed from UK supplier list, further investigations ongoing

Boohoo has reported a strong trading performance in the four months ended 31 December 2020, with revenue soaring by 40% to £661m. The online retailer now expects group revenue growth for the financial year to 28 February 2021 to be between 36% and 38%, ahead of its previous guidance of 28% to 32%. The company’s medium-term guidance remains at 25% sales growth per annum alongside a 10% adjusted EBITDA margin, reflecting the board’s confidence in the group’s prospects as it continues to invest to support growth and raise standards across its supply chain. Boohoo has made significant progress with its Agenda for Change programme, which was launched following last year’s scandal involving allegations of slavery and poor working conditions at supplier Jaswal Fashions. The independent review of its UK supply chain focused on corporate governance, purchasing practices, supporting Leicester’s workers and suppliers, and demonstrating best practice in action. Sir Brian Leveson was appointed to provide independent oversight of the programme, with his first report published today acknowledging the pace at which Boohoo is making changes while noting that recommendations remain work in progress. The company has invested in its Responsible Sourcing, Compliance, and Sustainability teams, appointed Bureau Veritas and Verisio for ethical audits of suppliers and subcontractors, established a Supply Chain Compliance Committee reporting to the board, and removed 64 suppliers from its UK supplier list. CEO John Lyttle expressed delight in the group’s performance amidst the Covid-19 pandemic and successful acquisition and integration of Oasis and Warehouse.

Factuality Level: 9
Factuality Justification: The article provides accurate and objective information about Boohoo’s trading performance, its progress with the Agenda for Change programme, and CEO John Lyttle’s comments on the company’s future plans. It includes relevant details and does not contain any misleading or sensationalist statements, redundant information, or personal opinions presented as facts.
Noise Level: 3
Noise Justification: The article provides relevant information about Boohoo’s trading performance and its efforts to improve supply chain standards following a scandal. It includes specific actions taken and progress made in addressing issues raised by the independent review. The CEO’s statement adds credibility to the report.
Financial Relevance: Yes
Financial Markets Impacted: Boohoo’s stock price and other fast fashion companies
Financial Rating Justification: The article discusses Boohoo’s strong trading performance, financial guidance, and progress on its Agenda for Change program, which impacts the company’s reputation and potentially its stock price. This in turn can impact the financial markets and other fast fashion companies within the industry.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the article.

Reported publicly: www.retailsector.co.uk