Boohoo’s incredible growth continues apace
Manchester-based online fashion retailer boohoo has raised its guidance for full year revenue again to be 80% ahead of expectations, as it posts a 106% increase in half year turnover to £263m.
It was only in June that the company said it expects full year revenue to February 2018 to be 60% ahead of expectations but today’s half year results show the incredible pace of growth, with six-month pre-tax profits up 41% to £20.3m to the end of August 2017.
In June the company raised £50m on the stock market so that it could build an automated super-site of over 600,000 sq ft, which will provide it with over £2bn of net sales capacity to keep up with demand.
The boohoo brand continues to account for the majority of revenue at £182m but the company’s Pretty Little Thing brand, which it acquired at the start of the year, is seeing incredible growth with its half year revenue of £73m up by almost 290% on last year. Nasty Gal – it’s latest addition – had a turnover of £8.4m from March, with sales growing month on month, the company said.
As well as the introduction of new brands, boohoo has also expanded its range and plus size, curve, petite and menswear have been the categories with the highest sales and strongest growth, whilst the more recently-introduced boohooKids, maternity, lingerie and tall ranges are also showing high rates of growth.
The company said its growth was largely attributable to international markets as it continues to increase market share overseas.
Mahmud Kamani and Carol Kane, joint CEOs, said: “PrettyLittleThing is fast gaining recognition amongst our target consumers as a highly desirable fashion brand in the UK, and its international growth is very encouraging, confirming its considerable potential.
“boohooMan has also performed very well, with high growth rates in the UK and overseas. Nasty Gal was rebuilt by us from virtually a zero base after acquisition in March this year and it is growing well month-on-month.
“The integration of the two new brands has been successful, adding diversity to our business whilst enabling us to draw upon our strengths in marketing, sourcing, operations and customer service to deliver profitable results and greatly increasing the group’s potential.”