FY15 ended February 28, 2015. FY16 ended February 29, 2016. Source: Company reports

STRONG FY16 RESULTS

boohoo.com’s revenues grew by 39.7%, to £195.4 million, in the year ended February 2016. This was versus the consensus estimate of a 37.2% increase, to £191.9 million, reported by S&P Capital IQ. Gross margin was negatively impacted by adverse exchange rate movements and lower-margin third-party sales on boohoo.com; the latter affected the gross margin by 100 basis points compared to the previous year, the company said. The SG&A ratio was positively impacted by a refinement of the mix of marketing expenditure and delivery promotions “to optimize customer profitability and sales growth,” the company said. Net profit climbed 48.0%, to £12.4 million, versus the consensus estimate of a 40.3% increase, to £11.8 million. This translated into diluted EPS of 1.10 pence versus consensus of 1.05 pence.

PERFORMANCE METRICS

boohoo.com reported the following:

• At constant exchange rates, total revenues were up 42%.
• UK revenues rose by 38%.
• The Rest of Europe segment saw revenues climb by 25%, or 35% at constant exchange rates.
• The Rest of the World segment grew revenues by 56%, or 63% at constant exchange rates.

The company also reported that:

• Active customer numbers increased by 34% year over year, to 4.0 million.
• Some 33% of revenue is now generated outside the UK.

GUIDANCE

The company said it had seen an “encouraging” start to FY17 and that it anticipates sales growth of around 25% for the year. This is in line with analysts’ expectations. Management said it looks to maintain EBITDA margins at levels similar to FY16’s. For FY17, analysts currently expect boohoo.com to post revenues of £239.3 million, an increase of 24.7% from their FY16 consensus estimate (though a lower percentage increase from the actuals reported today; FY17 estimates are expected to be revised following today’s results). Net profit after exceptionals is forecast to reach £14.6 million in FY17, an increase of 23.7% from the FY16 consensus estimate, and diluted EPS is expected to be 1.4 pence.