Boohoo Reports Strong Sales As It Relaunches Debenhams Website | Primark
Boohoo reported further strong sales growth thanks to the boom in online shopping seen during the pandemic, as it launched a new ‘digital department store’ Debenhams.
The online fashion retailer said its revenue grew 32% in the three months to May compared to the same period in 2020, even as Covid lockdowns eased and other retailers reopened their stores.
UK revenue was the strongest, up 50%, followed by the US with an increase of 43% while sales in the rest of Europe and the rest of the world fell 14% and 15% respectively. Overall revenue has grown 91% over the past two years, with sales in the UK and US doubling.
Boohoo relaunched the Debenhams website in April, selling fashion, beauty, and home goods, with new lines added. It bought the Debenhams brand and website from the administration for £ 55million in January, after the 243-year-old department store chain collapsed last year. The Debenhams name disappeared from the main street as all stores across the country were closed, resulting in the loss of around 12,000 jobs.
The Debenhams brand allows Boohoo, which flourished in the fast-paced fashion world, to take a big step forward in beauty and housewares. Debenhams was the UK’s second largest beauty retailer when it collapsed. Analysts say the acquisition will help Boohoo attract older buyers and enter new markets such as sportswear.
Boohoo also relaunched the Dorothy Perkins, Wallis and Burton websites, having bought the brands for £ 25million ex-administration in February, which completed the dismantling of Sir Philip Green’s Arcadia group. As with Debenhams, Boohoo – as an online retailer – had no interest in stores.
John Lyttle, CEO of Boohoo, said: “I am delighted with our performance in the first quarter, especially since it was always going to be difficult to produce high growth rates last year when the bottlenecks around the world entire have resulted in such high traffic to online retailers.
Boohoo is working to improve conditions among UK and overseas suppliers, after allegations of poor wages and conditions last year, particularly in Leicester where the group buys around 40% of its clothing. Boohoo’s supply chain overhaul is being overseen by consulting firm KPMG and retired judge Sir Brian Leveson.
Leveson said in a progress report, released Tuesday, that Boohoo took the recommendations “extremely seriously.”
“My experience has shown that any transformational change requires a continuous investment of time and effort to accommodate permanently imposed business changes. It will be even more difficult in a company as dynamic as Boohoo.
However, he added: “The progress and commitment is evident and has received positive feedback from a number of people interested and engaged in the issues Leicester has highlighted.”
Leveson said a small number of initially approved companies were removed from the supplier list as new companies were added, and Boohoo’s due diligence could now go well beyond that. from other retailers. With importers not manufacturing themselves but sourcing the clothes they sell to the group, Boohoo must insert fair treatment requirements into a contract, he said.
Lyttle said: “We continue to make great strides in our change agenda, with Sir Brian Leveson’s latest report this morning highlighting the seriousness with which the group is determined to develop and demonstrate a gold standard in our chain of business. supply. “
Richard Hunter, Head of Markets at Interactive Investor, said: “Rectifying reputational damage remains a work in progress and the share price has fallen 10% over the past year … In recent years, however, equities have remained up 49%. despite the decline, investor sentiment remains provocatively optimistic about the outlook. “