Online fashion retailer Boohoo today reported surging sales during the recent Covid-19 pandemic. Sales which had been expected to increase by 29% actually came in at 40% as shoppers flocked online to get their lockdown fashion fix.

Boohoo has also increased its forecasts for 2021. The fast-fashion retailer said sales would jump 28-32%, it now predicts 36-38%.

Image: Boohoo.com

The company has also said it will lease another major warehouse site in to serve its growing number of customers for the Nasty Gal, Karen Millen, Coast and Warehouse brands.

Russell Pointon, Director of Consumer and Media at Edison Group: “Boohoo’s trading statement for the four months ended December highlights continuing high rates of revenue growth, albeit growth ‘slowed’ a little versus the first six months of the financial year, leading to an upgrade in guidance for the full year. Constant currency revenue growth of 40% in the four months compares with 44% in the first six months of the year.

“Geographically the fastest growing areas were the UK and US, which represent c 80% of revenue, with constant currency growth rates of 40% and 51% respectively.

“Guidance for the year to February 21 has increased to revenue growth of 36-38% (28-32% previously) and an EBITDA margin of 10% despite cost headwinds/investment as a results of COVID and higher customer acquisition spend. Medium-term guidance is revenue growth of 25% and a 10% adjusted EBITDA margin.

“With respect to the company’s “Agenda for Change’ in response to its supply chain issues, in November the company appointed Sir Brian Leveson PC to provide independent oversight and his first report has been published today. The conclusion is that the company is making good progress and remains work in progress.”