Read across (Boohoo results)22 Apr 2020 14:52
UPDATE 2-Boohoo bucks British lockdown blues as sales rebound - Reuters
22-Apr-2020 10:06:24HEALTH-CORONAVIRUS/BOOHOO (UPDATE 2, PIX)
* Has seen improved year-on-year sales growth in April
* Can't give guidance for new financial year
* Has sufficient financial headroom to get through crisis
* Shares rise 5.9%
(Adds detail, analyst comment, shares)
LONDON, April 22 (Reuters) - British online fashion retailer
Boohoo said on Wednesday its sales had recovered in recent weeks
after taking a hit in March due to the coronavirus crisis,
benefiting from trading through the lockdown while rivals'
stores are closed.
In an attempt to limit the spread of the virus, all
non-essential stores in Britain have been closed since March 24.
However, the government has said online businesses should
continue to operate.
Boohoo said it had seen improved year-on-year sales growth
during April after a marked slowdown the previous month.
However, it cautioned that given the uncertainty generated
by the COVID-19 pandemic, it could not provide guidance at this
stage for its new financial year ending next February.
Boohoo sells own-brand clothing, shoes, accessories and
beauty products targeted at 16 to 40-year-olds.
Its shares were up 5.9% at 0816 GMT.
Britain's store-based retail sector, outside of food, has
been severely hit by the lockdown to counter the pandemic, with
already weak players such as Laura Ashley, Debenhams and Oasis
Warehouse all falling into administration over the last month.
"Boohoo is well placed to gain further market share in these
difficult times," said analysts at Jefferies, noting that in
lockdown consumers are spending considerably more time on social
media, a key strength of the retailer.
"Boohoo has the ability to protect its business and look for
expansion opportunities," they said.
STRESS TESTING
Boohoo's main UK rival, online player ASOS , also
took a big hit in March; it said on April 7 its sales had
plummeted 20-25% in the previous three weeks. It raised 247
million pounds of new equity and extended debt facilities to
shore up its finances and help get it through the crisis.
[nL8N2BV65H] [nFWN2BV1J4]
ASOS has yet to give a further update for April sales.
The current crisis has overshadowed a stellar 2019-20 year
for Boohoo. Group revenue soared 44% to 1.24 billion pounds,
with UK sales up 39% and international up 51%. Core earnings
(adjusted earnings before interest, tax, depreciation and
amortisation) rose 50% to 126.5 million pounds.
The company said it had analysed a range of scenarios for
differing levels of demand as it looks to weather the pandemic
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
pounds ($2
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