Boohoo raises growth forecasts

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by Stephen Chapman

Boohoo has raised its revenue growth forecasts following a strong Christmas trading period.

The Manchester-based online retailer said it anticipated growth for the financial year to be up to 38%, ahead of its previous guidance of 32%.

Sales rose 40% from £473.7m to £660.8m over the year.

The company said that it would also be opening a new warehouse in April, which would create up to 1000 jobs within 12 months. This will be used by its Nasty Gal, Karen Millen, Coast, Oasis and Warehouse brands.

The growth comes despite the negative headlines that continued to emerge last year, regarding its supply chain.

In November, it appointed Sir Brian Leveson to provide independent oversight of its new Agenda for Change programme. This was established to look into its: corporate governance; buying practices; supply chain standards; support for workers’ rights; support for suppliers; and demonstrating best practice in action.

Today’s Trading Update focused on the publication of the first report by Sir Brian Leveson and how it had significantly increased oversight across its supply chain.

The report, which is on the company’s website acknowledges the pace at which Boohoo is making changes, but it also notes that “recommendations remain work in progress.”

"I'm pleased to publish Sir Brian Leveson's first report today. I'm immensely proud of the speed with which our team has worked to effect change during such a challenging period for the Group, and it's encouraging to see our progress acknowledged in the report,” said Mahmud Kamani, Group Executive Chairman.

“We've added further independent experience to the Board and its committees in the period, and I was delighted to welcome Shaun McCabe to the Board in November. I'd like to take this opportunity to thank our team for their exceptional hard work over the last few months, and to reinforce our commitment to being a leader for positive change in UK textiles manufacturing. We have lots to do still, but an exciting year lies ahead for boohoo and our multi-brand platform in 2021."