Boohoo has reported an uptick in sales, just days after Sir Brian Leveson made his final report to the board concerning the retailer’s supply chain overhaul.
The fast-fashion giant, which owns brands including PrettyLittleThing, Nasty Gal, BoohooMan and Debenhams, recorded that net sales were up 7% year on year in the fourth quarter to February 28, up 48% on a two-year basis.
Over the full year to the same date, Boohoo achieved sales growth of 14%, in line with guidance and up by 61% against two years previously.
The retailer reported an adjusted EBITDA for the full year of £125m, in line with market expectations.
Boohoo said gross sales were up 26% on last year and 57% compared with two years ago over the quarter, with net sales negatively affected by an uptick in returns rates due to a change in product mix.
The retailer said these returns issues would continue to hamper results in the first half of the new financial year as spending and trends normalise.
It added that international sales continue to be impacted by longer delivery times due to pandemic-related supply chain issues, but that its rest-of-the world business returned to growth this quarter.
Boohoo chief executive John Lyttle said: “The group has delivered strong growth over the last two years, which has translated into significant market-share gains.
“We are confident that pandemic-related headwinds are short-term in their nature and our focus is to ensure the business is well-positioned for growth as these headwinds ease.”
The results come as Boohoo reaches a conclusion in its Agenda for Change programme, which was put into action following the modern slavery allegations made against the group regarding its Leicester supply chain in July 2020.
The group published the final report, carried out by Sir Brian Leveson, to the board on Tuesday, marking 18 months since the process began.
Leveson commended Boohoo’s progress but said that this does not mark “the beginning of the end of the process but merely the end of the beginning”.
Going forward, the retailer will introduce 23 key performance indicators to ensure it continues to tackle supply chain issues and work with suppliers and buying teams to ensure fair working practices.
Boohoo has also introduced a digital supplier hub, fully published its global supplier list and introduced training programmes for buyers and textile workers alike.
Leveson concluded: “Running through the Levitt Review [the independent review into Boohoo conducted by Alison Levitt QC] is the observation that Boohoo had failed to appreciate that running a great company required social responsibility as well as growth.
“That message has been heard, understood and is in the course of being remedied, with very substantial steps already taken to recognise the wider picture beyond commercial success.”
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