The Boohoo Group PLC (LON: BOO) share price surged 15.43% after its final results for the year ended on 28 February 2023. The fast fashion company £1.769 billion in revenues during the year, marking an 11% drop to £1.983 billion generated in 2022. However, the sales figures were up 43% on the £1.235 billion generated by the firm in 2020.
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Other crucial milestones achieved by the company included growing its UK market share by 61% in the past three years, with its global market share increasing by 43%. The company also successfully automated its Sheffield distribution centre, creating significant cost savings and driving best-in-class operational performance.
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The fashion company has also made significant progress in designing and readying its US distribution centre, which will be launched in phases later this year. The new centre will transform the speed at which US orders are fulfilled, further improving the delivery of customer orders in the United States.
While Boohoo’s financials were disappointing, given the decline compared to 2022, the company outperformed its other metrics on all other fronts. For example, the fast fashion giant grew its customer numbers to 18 million by the end of the financial year, compared to 13 million in 2020.
The fashion company has built a global infrastructure that can support sales exceeding £4 billion, with automation playing a critical role in the company’s overall strategy. The complete automation of the Sheffield distribution centre is an excellent example of what the firm can achieve.
John Lyttle, Boohoo’s Group CEO, commented: “Over the last three years, the Group has achieved significant market share gains. Looking ahead, we are investing for the future growth of this business with automation, local fulfilment capacity in the US and building global brand awareness. We will deliver sustainable returns on these investments. We will continue to give our customers the latest trends, outstanding value and a great experience. Our confidence in the medium-term prospects for the group remain unchanged, and as we execute on our key priorities, we see a clear path to improved profitability and getting back to double-digit revenue growth.”
*This is not investment advice.
Boohoo share price.
The Boohoo share price surged 15.43% to trade at 44.74p, from Monday’s closing price of 38.76p.
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