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Birmingham Post
Birmingham Post
Business
Jon Robinson

Debenhams losses revealed as Boohoo group brands suffer mixed fortunes

Since being founded in 2006, Boohoo has grown to be one of the largest online fashion companies in the UK.

The Manchester-headquartered group has been steadily growing its stable of brands since acquiring PrettyLittleThing in 2017.

It's now home to major household names such as Debenhams, which it bought for £55m when the department store chain collapsed into administration.

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Boohoo, being a listed company, files its accounts with the London Stock Exchange every quarter. However, it does not include a breakdown of each of its brand's performance in those figures.

Those businesses remain private and their results have only just been filed with Companies House.

Boohoo reported its group results for the financial year to February 28, 2022, in May. It also posted its results for the following six months in September.

Using the newly-published accounts for Boohoo's roster of brands, BusinessLive has outlined how each of them has fared over their latest financial year.

Debenhams

Manchester's Debenhams store has been closed since Boohoo took the chain over (Adam Vaughan)

Debenhams was bought by Boohoo in a £55m deal in January 2021 when the department store chain collapsed into administration.

All the stores were closed and the brand now exists online only.

In the period from January 14, 2021, to February 28, 2022, Debenhams posted a revenue of £56.9m and a pre-tax loss of £11.7m.

A statement signed off by the board, which was also included in all of the other financial documents for the other group brands, said: "The global market for online fashion is forecast to continue to grow, which provides a favourable backdrop for the company with much opportunity for further growth.

"Customers throughout the world are seeking a wide choice of quality fashion forward products at value prices, generally lower than those available on the high street, with the convenience of home delivery.

"The company's target market has a high propensity to spend on fashion and the market has proven to be quite resilient to external macroeconomic factors.

"The pandemic has impacted our business and is most significantly seen in the unpredictability of customer demand, the rate of customer returns, the increase in shipping times and the cost of shipping on both inbound and outbound products.

"Some of these factors, such as the rate of customer returns, have already reverted from the low rates during the pandemic to rates seen before the pandemic, while other factors such as the shipping cost increases are taking longer to move towards pre-pandemic levels."

Debenhams added: "We remain extremely confident in the company's future growth prospects, and as short-term demand uncertainty and material cost headwinds as a result of the pandemic unwind, the company's belief that it continues to be capable of executing its strategy aimed at leading the fashion e-commerce market remains unchanged."

PrettyLittleThing

Gemma Owen is the brand's latest UK brand ambassador (PLT)

A fall in sales outside the UK and USA slowed PrettyLittleThing's growth during its latest financial year as return rates rose.

The brand posted a revenue of £712.2m for the 12 months to February 28, 2022, up from the £710.1m it achieved in the prior year.

However, the company's pre-tax profits fell from £98.7m to £75.1m over the same period.

PrettyLittleThing said its pre-tax profits were impacted by £11.6m of costs related to the automation of its Sheffield warehouse, a £125m project.

The company was established in 2012 by brothers Umar and Adam Kamani. It was bought by Boohoo, which had been co-founded by their father Mahmud Kamani, in January 2017.

Nasty Gal

US-focused Nasty Gal was bought by Boohoo in 2017 for $20m after it filed for bankruptcy. It was founded by Sophia Amoruso in LA in 2006.

For the 12 months to February 28, 2022, the brand's revenue decreased from £140.2m to £11.4m and it slipped from a pre-tax profit of £5.8m to a loss of £16.8m.

Nasty Gal said it has established a "strong following" in the UK but that "continued extended delivery times to the key US market, driven by reduced airfreight capacity, have subdued demand".

Its USA revenue fell from £71m to £62.8m while its UK sales went from £42.7m to £31.2m.

Revenue in the rest of Europe also dropped from £15.5m to £9.4m and from £10.9m to £6.8m in the rest of the world.

Karen Millen

Inside a Karen Millen store (Manchester Evening News)

Karen Millen was founded in 1981 and has been owned by Boohoo since 2019 when it, and its sister company Coast, were bought out of administration for £18m.

The brand became online only and its standalone stores were closed.

For the year to February 28, 2022, Karen Millen's revenue increased from £9.6m to £67.5m and its pre-tax profits jumped from £6.1m to £12.1m.

Its UK sales rose from £27.7m to £45.3m and from £2.4m to £8.8m in the USA.

They also increases from £6.9m to £8.6m in the rest of Europe and from £2.4m to £4.6m in the rest of the world.

Karen Millen said that "exceptional growth" in the USA is "adding to an already highly successful relaunch of this iconic brand".

Coast

Coast is part of the Boohoo group (Boohoo)

Founded in 1996, Coast was bought out of administration alongside Karen Millen in 2018. It is now an online only business.

For the year to February 28, 2022, the brand's revenue increased from £12m to £19.5m and it made a pre-tax profit of £1m after making a loss of £1.8m in the prior 12 months.

Its UK sales rose from £11m to £16.4m and from £985,000 to £3.1m in the rest of the world.

Coast said that the "high-growth brand now has a strong wedding and occasion wear range to capitalise on the return to normal life".

MissPap

Boohoo acquired MissPap in March 2019 after it had been founded in 2015 by Ashley Ali.

For the 12 months to February 28, 2022, the brand's revenue dipped from £14.5m to £12.7m while its pre-tax losses went from £3.9m to £2.9m.

UK sales fell from £13.6m to £10.8m while revenue in the rest of the world increased from £908,000 to £1.8m.

The company said the fall in gross margin to just under 40% was "driven by higher return rates in the UK".

It added: "Miss Pap continues to provide statement pieces with an affordable price tag."

Oasis

Holly Willoughby's lemon dress is from Oasis (Holly Willoughby/Instagram)

The brand was founded in 1991 and was acquired by Boohoo out of administration in June 2020.

For the 12 months to February 28, 2022, the company's revenue jumped from £7.4m to £28.2m but its pre-tax losses widened from £985,000 to £2.5m.

Its UK sales increased from £6.8m to £24.8m and from £582,000 to £3.4m in the rest of the world.

The company said the "rapidly growing" brand "focuses on lifestyle dressing for every occasion".

Warehouse

Warehouse is owned by Boohoo (UNKNOWN)

Warehouse was founded in 1976 and entered administration in 2020.

Its brand, assets and stock were acquired by Boohoo at the same time as the Oasis chain.

For the 12 months to February 28, 2022, the brand's revenue surged from £5.6m to £21.3m but its pre-tax losses widened from £857,000 to £2m.

UK sales jumped from £5.4m to £18.6m and its revenue went from £238,000 to £2.6m in the rest of the world.

Burton

Burton was founded by Sir Montague Maurice Burton in Chesterfield in 1903. It was acquired by Sir Philip Green's Arcadia Group in 2002.

It entered administration in 2020 and was acquired by Boohoo alongside Dorothy Perkins and Wallis for £25m. All its stores closed in 2021.

For the period from January 26, 2021, to February 28, 2022, the brand's revenue totalled £31.3m and it made a pre-tax loss of £3.3m.

Its UK sales totalled £29.4m and its revenue in the rest of the world was £1.9m.

Dorothy Perkins

Dorothy Perkins can trace its roots back to 1909 and became part of the Burton Group in 1979.

It entered administration in 2020 and was acquired by Boohoo alongside Burton and Wallis for £25m. Its stores also closed.

For the period from January 26, 2021, to February 28, 2022, the brand's revenue totalled £74.9m and it made a pre-tax loss of £15.9m.

Its UK sales totalled £70.2m and £4.7m in the rest of the world.

Wallis

Christine Lampard in the Blue Butterfly Border Print Dress (Wallis)

Wallis was founded in 1923 and was part of the Arcadia Group before its collapse into administration in 2020.

For the period from January 26, 2021, to February 28, 2022, the brand's revenue totalled £27.8m and it made a pre-tax loss of £4m.

Its UK sales stood at £26.1m and its revenue in the rest of the world totalled £1.6m.

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