(Alliance News) - Online fast fashion seller Boohoo Group continued to show other retailers how it is done.
Boohoo said Tuesday it saw strong growth across all brands in all regions in recent months, raising its annual guidance as a result.
For the four months to December 31, revenue was up 44% to GBP473.7 million from GBP328.2 million last year.
The fast fashion retailer expects annual revenue growth of 40% to 42%, which is ahead of the 33% to 38% range previous guided. In addition, boohoo expects an annual adjusted Ebitda margin of 10.0% to 10.2%. This is ahead of previous guidance of 10%. All other guidance remains unchanged.
"I am delighted to report the group has enjoyed record trading in the last four months of 2019. All of our brands have performed exceptionally well and delivered strong market share gains. We have continued to see operating leverage in our more established brands, and will continue to invest into them and our newly-acquired brands. The newly-acquired brands, MissPap, Karen Millen and Coast, are showing great promise and open different target markets for the group, in line with our strategy to build our multi-brand platform," said Chief Executive Officer John Lyttle.
Boohoo also promoted Non-Executive Director Brian Small to be deputy chair. Small will lead on all board matters where independence is required, the company said, working alongside Executive Chair Mahmud Kamani. Small was chief financial officer of JD Sports for 15 years.
Boohoo shares were up 2.9% early Tuesday.
Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: up 0.1% at 7,622.68
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Hang Seng: down 0.5% at 28,819.99
Nikkei 225: closed up 0.7% at 24,025.17
DJIA: closed up 83.28 points, 0.3%, at 28,907.05
S&P 500: closed up 0.7% at 3,288.13
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GBP: down at USD1.2966 (USD1.2989)
EUR: flat at USD1.1140 (USD1.1144)
Gold: down at USD1,541.40 per ounce (USD1,551.79)
Oil (Brent): flat at USD64.20 a barrel (USD64.24)
(changes since previous London equities close)
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ECONOMICS AND GENERAL
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Tuesday's Key Economic Events still to come
0830 EST US consumer price index
0830 EST US real earnings
0855 EST US Johnson Redbook retail sales index
1630 EST US API weekly statistical bulletin
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The US Treasury Department announced it has dropped its designation of China as currency manipulator just days before the two countries are to sign an initial trade agreement. "China has made enforceable commitments to refrain from competitive devaluation, while promoting transparency and accountability," US Treasury Secretary Steven Mnuchin said in a statement. The Trump administration roiled markets when it labelled China as a currency manipulator in August as Washington sought to pressure Beijing to meet US trade demands. After nearly two years of tit-for-tat tariffs Washington and Beijing are set to sign a "phase one" trade deal on Wednesday.
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China's trade surplus with the US narrowed last year as the world's two biggest economies exchanged punitive tariffs in a bruising trade war, data showed. China's surplus with the US came in at around USD295.8 billion in 2019, down 8.5% from the previous year's record USD323.3 billion, according to customs data. In December, its surplus with the US was around USD23.2 billion, from USD24.6 billion the month before. At a news conference on Tuesday, spokesman for the customs administration Zou Zhiwu said that since November and December, Chinese imports from the US including of soybeans and pork have picked up. China's foreign trade volume in total fell slightly on-year in 2019, and its surplus with the world stood at USD421.5 billion. For the full year, exports rose 0.5% while imports fell 2.8%.
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UK Prime Minister Boris Johnson's Brexit deal has cleared its first major hurdle in the House of Lords. Late Monday, peers backed, without a vote, the second reading of the EU (Withdrawal Agreement) Bill, enabling the UK to leave the EU on January 31. But the legislation is set to face stiffer scrutiny in its committee stage with peers likely to force votes on contentious issues at report next week. One area of conflict will centre on a likely attempt to reintroduce provisions allowing unaccompanied child refugees to continue to be reunited with their families in the UK after Brexit.
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The EU's executive is to unveil plans on Tuesday to leverage billions of euros over the coming years in support of ambitious climate goals that would reduce the bloc's net carbon emissions to zero by 2050. European Commission President Ursula von der Leyen has made climate action a key priority. Last month she unveiled her flagship "European Green Deal," aimed at adapting the EU economy to achieve climate neutrality. However, her plan - which will require huge investment - hinges on buy-in from member states, who are locked in a bitter fight over the bloc's next long-term budget. The proposal to be unveiled on Tuesday foresees EUR7.5 billion in new EU funding from 2021-27, according to a draft seen by dpa.
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BROKER RATING CHANGES
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BERENBERG RAISES SHELL B TO 'BUY' (HOLD) - PRICE TARGET 2800 (2750) PENCE
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BERENBERG CUTS BP TO 'HOLD' (BUY) - PRICE TARGET 560 (590) PENCE
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GOLDMAN RAISES RYANAIR PRICE TARGET TO 19.30 (17) EUR - 'BUY'
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COMPANIES - FTSE 100
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Taylor Wimpey said its 2019 results will be in line with its expectations. The housebuilder said despite ongoing economic and political uncertainty during the year in the UK, the housing market remained stable throughout 2019. Taylor Wimpey said total home completions increased by 5% to 15,719 in 2019, including joint ventures, from 14,933 in 2018. It ended 2019 with a record total order book valued at GBP2.18 billion, up from GBP1.78 billion in 2018. Taylor Wimpey added that it remains "very cash generative" and, as previously announced, intends to return GBP610 million to shareholders by way of total dividend in 2020. "While 2020 will continue to be a year of change for the UK, we welcome the increased political stability following the general election. We start the year with a strong order book and continue to target a smoother profile of completions throughout the year but expect 2020 to continue to be second half weighted," Chief Executive Officer Pete Redfern said.
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COMPANIES - FTSE 250
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Games Workshop said it delivered record sales and profit levels in during the interim period. For the half year ended December 1, revenue rose 19% to GBP148.4 million from GBP125.2 million the year before, and pretax profit increased 43% to GBP58.6 million from GBP40.8 million. Reported sales grew by 19% to GBP148.4 million for the period. Games Workshop declared a 45 pence per share dividend for the period.
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Irish builders merchant Grafton Group said trading in November and December was better than anticipated, despite end markets remaining subdued. For the financial year which ends on February 27, the company expects adjusted operating profit of GBP202 million, or GBP190 million on a pre-IFRS 16 basis for its continuing operations. Grafton said it expects 2019 revenue from continuing operations to be up 2.7% to GBP2.67 billion and like-for-like revenue up 1.9%. In the UK, Grafton said, households continued to be very cautious about spending as uncertainty persisted during the fourth quarter. The weak markets of September and October continued into November and December but did not deteriorate further, Grafton noted.
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Moody's Investors Service on Monday downgraded luxury car maker Aston Martin Lagonda Global Holdings amid weak profitability and low wholesale volumes in 2019. The ratings agency, which reiterated its negative outlook on Aston Martin, downgraded the company's corporate family rating to Caa1 from B3 and probability of default rating to Caa1-PD from B3-PD. "The downgrade reflects the weak profitability and low wholesale volumes in 2019 and particularly towards the end of the year," said Tobias Wagner, a senior analyst at Moody's. "Cash flow for the second half of 2019 was also significantly below Moody's expectations resulting in a lower starting point for liquidity as the company prepares for the critical DBX production ramp up and another year of significant investment spending," Wagner added.
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COMPANIES - INTERNATIONAL
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Visa has agreed to buy Plaid, a San Francisco-based company that helps people to securely connect their financial accounts to the apps they use to manage their financial lives, for USD5.3 billion. The acquisition indicates both an entry into new businesses and complementary enhancements to Visa's existing business, the company said. Visa said Plaid's fintech-centric business opens new market opportunities both in the US and internationally. Also, the combination of Visa and Plaid provides the opportunity to deliver enhanced payment capabilities and related value-added services to fintech developers. Also, the acquisition will enable Visa to work more closely with fintechs through all stages of their development and drive growth in Visa's core business, the company said. Visa said it will fund the transaction from cash on hand and debt issuance at the appropriate time. The transaction is expected to close in the next three to six months.
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Tuesday's Shareholder Meetings
Manchester & London Investment Trust
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By Tom Waite; thomaslwaite@alliancenews.com
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