British online fashion retailer Boohoo achieved sales of £1.75 billion last year

On Wednesday, foreign media reported that British online fashion retailer Boohoo released its 2020 annual report, which showed that due to the rapid development of online shopping during the COVID-19 pandemic, Boohoo 's revenue increased by 41% to 1.75 billion pounds .

The company's adjusted earnings before interest, tax, depreciation and amortization were 173.6 million pounds in the year to February 28 , beating analysts' average forecast of 171.3 million pounds and up from 126.6 million pounds in the 2019-2020 financial year.

In January this year , Boohoo acquired the Debenhams brand for £55 million, while in February it bought the Dorothy Perkins , Wallis and Burton brands from Arcadia's administrators for £25.2 million.

Some experts predict that Boohoo 's revenue will grow by about 25% in 2021-2022, and these newly acquired brands are expected to account for 5% of revenue .

However, acquisitions are expected to dilute margins . As a result, the group expects adjusted cash profit margins to be between 9.5% and 10%. Despite this, house broker Jefferies predicts that adjusted cash profit will rise to £214 million by 2022 and £270 million by 2023.

Susannah Streeter, senior investment and market analyst at Hargreaves Lansdown, said: Boohoo has successfully weathered the pandemic and is now experiencing a boom as e-tailers offer low prices and shoppers have shifted their focus from physical stores to online.

It is reported that Boohoo was founded by Madhmud Kamani, an Indian businessman, who started out with plus-size women's clothing and sold it through offline stores, mail and other channels. Later, with the rise of e-commerce, Madhmud Kamani smelled new opportunities, closed offline stores and focused on online sales. In 2006, he and designer Carol Kane founded the online retail platform boohoo.com, which sells new, fashionable and low-priced women's clothing.

The main sales force of the platform is people aged 16-40, with an average of 100-200 new products launched every day, far exceeding fast fashion giants such as Zara. At the same time, it strictly controls prices and establishes a foothold in the mass market with the ultimate cost-effectiveness; it mainly sells clothing, shoes, accessories and beauty products. Last year, the number of "active" customers shopping on the Boohoo website increased by 28% to 18 million.

Online fashion retail platform Boohoo is global in scope but generates the majority of its revenue in the UK, where sales grew 39% to £945 million over the past year .

In short, Boohoo has great development potential, and merchants can pay more attention to this platform to avoid missing out on opportunities .

Boohoo

U.K.

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