Boohoo.com profits surge by 42%
ONLINE fast fashion retailer boohoo.com has had a stellar year with sales and profits both up by more than 40% on last year.
Sales in the full year to the end of February were up 40% on the previous year to £195.4m, with strong growth in all territories – UK (+38%), Europe (+25%) and Rest of the World (+56%). A third of the company’s turnover is now generated outside the UK.
Pre-tax profits at the listed Manchester-based group increased 42% to £15.67m (2015: £11.07m)
The company, which specialises in the so-called ‘social generation’ – men and women under 25 – now has 4 million active customers across the world, up 34% on a year ago.
The company has improved the mobile experience through new apps in UK, US and Australia as well as introducing more flexible delivery and return options and later next day delivery cut off times.
Joint chief executives Mahmud Kamani and Carol Kane, said: “By refining the mix of promotional and marketing expenditure in each of our key markets, we have achieved growth ahead of our plans.
“The expansion of our product range has been very well received by our customers and contributed to the strong growth, with the new petite range performing very well along with plus-size which was introduced last year and continues to grow rapidly.”
They added that the company had seen an “encouraging start” to the 2017 financial year and that sales growth of around 25% for the financial year is expected.
Based on Dale Street in the city centre and with its warehouse in Burnley, boohoo said it has £58.3m cash on its balance sheet.
