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17 Jun 2020 | 08:15

Boohoo to buy Warehouse, Oasis for £5.3m; hails 'very strong' Q1

(Sharecast News) - Fast-fashion retailer Boohoo said on Wednesday that it has agreed to buy the online businesses and intellectual property of Oasis and Warehouse for £5.25m in cash as it reported "very strong" trading in the first quarter despite the Covid-19 pandemic. Boohoo - which owns PrettyLittleThing, Nasty Gal, Coast and Karen Millen - will buy the businesses from retail investor Hilco Capital, which acquired the brands and stock of Oasis and Warehouse when they collapsed into administration in April.

The company said it will integrate both businesses onto its platform in the coming months, allowing them "to benefit from the group's insight, infrastructure, supply chain and operating model".

For the three months to the end of May, Boohoo posted a 45% jump in group revenue to £367.8m, with revenue in the UK up 30% to £183m, while the rest of Europe saw a 65% increase to £63.4m. In the US and rest of the world, revenue rose 83% and 22% to £92m and £29.4m, respectively.

There was strong underlying growth across Boohoo, PLT and Nasty Gal, it said, while newer brands MissPap, Karen Millen and Coast continue to trade strongly, having successfully integrated onto the group's platform last year.

For the current financial year ending 28 February 2021, Boohoo said it expects to deliver "another year of strong profitable growth, and ahead of market expectations". Revenue growth is expected to be around 25%, with an adjusted EBITDA margin of 9.5% to 10%.

"This guidance reflects our expectation for an ongoing period of consumer uncertainty, likely promotional intensity in markets in which we operate, as well as continued near-term carriage inflation for some of our overseas markets," it said.

Chief executive officer John Lyttle said: "During unprecedented and challenging times, the group has delivered a very strong trading and operational performance.

"Whilst there is a period of uncertainty within the markets in which we operate, the group is well-positioned to continue making progress towards leading the fashion e-commerce market globally."

At 0830 BST, the shares were up 10% at 428.35p.

Independent retail analyst Nick Bubb said: "Not even the bulls were expecting much more than 20% sales growth, given the weakness in March, but Boohoo has smashed expectations with 45% growth."
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