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    BOO   JE00BG6L7297

BOOHOO GROUP PLC

(BOO)
  Report
Delayed Quote. Delayed London Stock Exchange - 09/17 11:35:15 am
263.5 GBX   +1.54%
09/17BOOHOO : Next to run Gap brand in Britain's retail shake-up
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09/17Next to run Gap brand in Britain's retail shake-up
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09/09WALL STREET STOCK EXCHANGE : A step closer to tapering
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Zara owner Inditex shakes off chill with strong second quarter start

06/12/2019 | 05:50am EDT
FILE PHOTO: People shop at a Zara store during the grand opening of The Hudson Yards development in New York

MADRID (Reuters) - Zara owner Inditex bounced back from a weak start to 2019, when unseasonably cold weather in southern Europe stifled sales for the Spanish fashion group, with a strong performance in the first weeks of the second quarter.

This contrasts with how others in the struggling apparel sector are faring, with mid-market clothing retailer Ted Baker posting a profit warning on Tuesday after Britain had its biggest fall in retail sales on record in May.

"This is particularly impressive in our view, notably in context of industry data we have so far for May," JP Morgan said in a research note following Inditex's results on Wednesday.

Shares in the Spanish group rose 1.1% to trade at 25.57 euros, whereas Boohoo's fell, despite the online British fashion retailer reporting robust sales, as lower margins disappointed investors.

Inditex, the world's biggest clothing retailer and owner of Massimo Dutti, Bershka and Oysho reported net profit of 734 million euros for the three months from Feb. 1 to April. 30, on sales up 5% at 5.93 billion euros.

The apparel sector has been hit by out-of-season sales as savvy shoppers expect discounts and hunt for online bargains.

Sales at constant exchange rates for the first six weeks of the second quarter were up 9.5% as shoppers snapped up items like jewel-toned blazers and long printed dresses from Zara's spring collections.

Inditex maintained its full-year guidance of 4-6% growth for like-for-like sales. RBC Capital Markets estimated it had booked like-for-like sales of around 6.5% during the first weeks of the second quarter, against around 2% in the first quarter.

Gross margin grew 6% year-on-year to 59.5% in the quarter, as foreign currency effects moved back into favour after two years of nibbling away at profitability.

Inditex generates more than half of its sales in other currencies that have to be converted back into euros when it reports. Those currencies have strengthened slightly against the euro compared to a year ago, on average, helping reported sales.

Societe Generale and Credit Suisse estimated sales at Inditex were reduced 3.5% last year by this effect, moving to a positive effect this quarter.

With the adverse foreign exchange effects removed, Inditex is under pressure to show it can deliver strong like-for-like sales without the margin dilution that has affected others.

"With less impact from foreign exchange, this will be an important year to prove the concept," UBS said in a note.

(Reporting by Sonya Dowsett; Editing by Paul Day, Jan Harvey and Alexander Smith)

By Sonya Dowsett


© Reuters 2019
Stocks mentioned in the article
ChangeLast1st jan.
BOOHOO GROUP PLC 1.54% 263.5 Delayed Quote.-23.18%
INDITEX 1.47% 31.71 Delayed Quote.21.77%
TED BAKER PLC 4.57% 155.6 Delayed Quote.34.02%
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Analyst Recommendations on BOOHOO GROUP PLC
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Financials
Sales 2022 2 239 M 3 076 M 3 076 M
Net income 2022 102 M 140 M 140 M
Net cash 2022 233 M 319 M 319 M
P/E ratio 2022 32,1x
Yield 2022 -
Capitalization 3 257 M 4 479 M 4 474 M
EV / Sales 2022 1,35x
EV / Sales 2023 1,05x
Nbr of Employees 3 621
Free-Float 76,4%
Chart BOOHOO GROUP PLC
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boohoo group plc Technical Analysis Chart | BOO | JE00BG6L7297 | MarketScreener
Technical analysis trends BOOHOO GROUP PLC
Short TermMid-TermLong Term
TrendsBearishBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 19
Last Close Price 263,50 GBX
Average target price 449,39 GBX
Spread / Average Target 70,5%
EPS Revisions
Managers and Directors
John Lyttle Chief Executive Officer & Executive Director
Neil James Catto Chief Financial Officer & Executive Director
Mahmud Abdullah Kamani Group Executive Chairman
Jo Graham Chief Information Officer
Iain McDonald Independent Non-Executive Director
Sector and Competitors
1st jan.Capi. (M$)
BOOHOO GROUP PLC-23.18%4 479
INDITEX21.77%115 946
KERING7.20%93 261
FAST RETAILING CO., LTD.-17.39%70 997
ROSS STORES, INC.-7.46%40 732
HENNES & MAURITZ AB0.98%33 102