Amid new retail data...
Boohoo adds Oasis and Warehouse to portfolio
Booming boohoo: the chain reported strong sales
Online fashion chain Boohoo has acquired the online businesses and all associated intellectual property of Oasis and Warehouse, for £5.25m in cash from Hilco Capital.
The Oasis and Warehouse Group closed its website and all stores and concessions at the end of April, after administrators failed to find a buyer, resulting in 1,803 redundancies.
The two brands will add to a growing portfolio which includes Pretty Little Things and Nasty Gal.
Unaudited management information shows that Oasis and Warehouse generated direct online revenues of £46.8 million in aggregate.
Boohoo said first quarter trading has been very strong. Revenue was up 45% year on year to £367.8m, with strong underlying growth across boohoo, Pretty Little Thinkgs and Nasty Gal. The newest brands (MissPap, Karen Millen and Coast) continue to trade strongly having successfully integrated onto the Group’s scalable platform last year.
The group entered the year with sustained momentum from a strong finish to its previous financial year.
Trading in the middle of March through to early April was mixed, as a result of the impact of the COVID-19 pandemic, initially with a marked decrease in year-on-year growth.
Performance across all of the firm’s brands and geographies improved throughout April, with a robust performance delivered in May.
The group is well-positioned to continue making progress towards leading the fashion e-commerce market globally.– John Lyttle, Boohoo
During the period, Boohoo Group purchased the remaining 34% minority stake in PrettyLittleThing from its minority shareholders. The business also completed a £197.7m equity fundraising to finance further acquisitions.
The group expects to deliver strong profitable growth ahead of market expectations for the year ending 28 February 2021. Revenue growth is anticipated to be 25% for the year, with an adjusted EBITDA margin of 9.5% to 10%.
Chief executive John Lyttle, said: ”During unprecedented and challenging times, the Group has delivered a very strong trading and operational performance.
“Whilst there is a period of uncertainty within the markets in which we operate, the group is well-positioned to continue making progress towards leading the fashion e-commerce market globally.”
Retailers ‘on the brink’
Scottish retailers are hoping the government tomorrow confirms a date for shops to reopen after new data showed sales slumped by more than a quarter.
Total sales in May were down year-on-year by 27.6%, although this was an improvement on the record low 32.2% in April.
Overall food sales rose 3.6%, with grocers reporting a higher basket spend than before the Covid-19 crisis, the Scottish Retail Consortium-KPMG Retail Sales Monitor found. But there was a 53.2% drop in total non-food sales.
SRC head of policy Ewan MacDonald Russell said: “While the figures were an improvement on April’s record low, restrictions on trading are bringing many retailers to the brink.
“The current crisis is forcing retailers who are currently barred from opening to accelerate the move to online and multi-channel sales.”