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Summary
- Boohoo reported a 37 per cent rise in its earnings for the year ending 28 February 2021.
- Ikea is driving its climate change initiative by launching a furniture re-sale and buyback scheme.
- Even though the exact uptake of the scheme is yet to be seen, but the second-hand market for retail goods is growing at a rapid pace.
The number of goods sold in the UK’s physical and online stores increased by 5.4 per cent for March on a month-to-month basis, according to the latest official figures. Economists suggested that this surge came about as a result of pent-up demand in the month of February that had strict restrictions on a national level. Clothing sales rose by a whopping 17.5 per cent for March, said the Office for National Statistics, which reflected in the earnings of fashion retailers like Boohoo Group Plc.
Boohoo released its financial results on Wednesday reporting a 37 per cent rise in its earnings for the year ending 28 February. The adjusted EBITDA for the year was reported at £173.6 million. The online retailer gained from the digital shopping trend that picked up during the pandemic times.
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Boohoo’s Financial highlights
- The retailer’s revenue was up 41 per cent to £1.745 billion for FY 21.
- The net cash flow at the end of the year stood at £276 million.
- Gross profitfor FY 21 was £0.95 billion, up 42 per cent from FY20.
- Adjusted diluted earnings per share were calculated to be 8.67 pence for FY21.
The company’s stock (LON: BOO) was trading at a value of GBX 325.00 on 5 May at 11.21 AM, down 0.46 per cent from its previous close.
Also Read: Government asks Boohoo (LON:BOO) to link senior staff bonuses to its climate goals
Ikea launches a buyback scheme
Retail firm Ikea is driving its climate change initiative by launching a furniture resale and buyback scheme. Under the scheme, if a customer returns an Ikea item, which is not in good condition, he or she will receive a voucher to buy another second-hand item or food from the company store.
The scheme was previously planned to be launched in November 2020. But it was deferred due to the pandemic. Apart from the UK, the initiative is being launched in 26 countries, where the retailer has a presence.
The company would be buying back used products in new-like condition for half of their retail price. Items with minor scratches would be bought back for 40 per cent of the original price. These bought over items would be available for sale in both physical stores as well on online platforms.
The buyback scheme is valid on items such as desks, dining tables, small tables, shelf units, cabinets, dressers, and bookcases.
Saebjornsen, Adviser, Ikea, said that even though the exact uptake of the scheme is yet to be seen, the second-hand market for retail goods was growing at a rapid pace. The main idea of the scheme is to make sustainable living easy and mainstream, she added.
An Interesting Read: Why Ikea's UK annual sales dropped by 10% in 2020
