MANCHESTER, United Kingdom — British online fashion retailer Boohoo said on Wednesday it saw a marked decrease in year-on-year sales growth in the middle of March, impacted by lockdowns due to the coronavirus crisis, though its performance has recovered in recent weeks.
Boohoo, which in line with government guidance has carried on trading through the lockdown, said on Wednesday it had seen improved year-on-year growth in group sales during April.
However, it said that given the uncertainty generated by the pandemic, it could not provide guidance for its new financial year to February 28, 2021, at this stage.
Boohoo, which sells own-brand clothing, shoes, accessories and beauty products targeted at 16 to 40-year-olds, said it had analysed a range of scenarios, factoring in a downturn in demand and the possibility of warehouse closures.
Having stress-tested its liquidity in these scenarios it was comfortable it had sufficient financial headroom, pointing to a largely variable cost base, low cash burn rate and £241 million ($297 million) of net cash.
The crisis overshadowed a stellar 2019-20 year for Boohoo Group revenue soared 44 percent to £1.24 billion, and core earnings (adjusted earnings before interest, tax, depreciation and amortisation) rose 50 percent to £126.5 million.
By James Davey; editor: Estelle Shirbon and Louise Heavens