Boohoo has today reported a 51% increase in first half profit and raised its full year guidance, with publicity over failings in its supply chain showing no impact on the British online fashion retailer's sales.
Last week, Boohoo accepted all the recommendations of an independent review which found several failings in its supply chain in England and set out steps to tackle the problems.
The review came after allegations about working conditions and low pay in its UK supply chain.
Boohoo, which sells own-brand clothing, shoes, accessories and beauty products targeted at 16- to 40-year-olds, has been under intense scrutiny since July when the allegations surfaced after a lockdown during the coronavirus pandemic.
Unlike store-based rivals who had to shutter shops for several months during coronavirus lockdowns, Boohoo was able to trade throughout the first half.
It said it had made a good start to the second, with momentum continuing into September.
"Boohoo has shrugged off the supply chain scandal and strutted ahead with strong revenue growth across all its brands and markets," Hargreaves Lansdown analyst Susannah Streeter said.
Boohoo shares were lower this morning, but have recovered all their losses from July when the supply issues emerged and are up 27.5% in 2020.
The group said it made a pretax profit of £68.1m in the six months to August 31, on revenue up 45% to £816.5m.
Revenue for 2020-21 was now expected to grow by 28% to 32% compared to about 25% previously guided, while core profit margin (adjusted EBITDA margin) was expected to be around 10%, compared to the 9.5% to 10% previously forecast.
Boohoo said it is planning for economic uncertainty in the second half, including possible reduced consumer spending.
It also anticipates product return rates returning to normal levels, continued delivery cost inflation in some overseas markets and increased marketing and capital expenditure.
