Online retailer says results will be ahead of previous guidance

John Lyttle

Boohoo, the Manchester-based online fashion group, said its its annual results for the current financial year will be ahead of previous guidance.

The upgrade announced today is as a result of the group’s performance exceeding expectations, with strong revenue growth driving operating leverage across key brands.

In a trading update for its first half, the board said group sales growth is now expected to be between 33% and 38%, against previous guidance of 25% to 30%.

The board anticipates EBITDA margins for the financial year to remain at around 10%, in line with previous guidance, reflecting anticipated investments across the financial year into the three brands acquired by the group in the first half.

It said further guidance will be given at the group’s interim results on September 25.

Last month boohoo announced the acquisition of renowned British brands Karen Millen and Coast.

The brands had been put up for sale by Icelandic bank, Kaupthing. The deal was worth £18.2m, funded by the group’s existing cash resources.

John Lyttle, boohoo group chief executive, said at the time: “The acquisition of the online business of two great and renowned British brands in Karen Millen and Coast represents another milestone in the group’s growth story as it continues to invest in its scalable multi-brand platform and gain further share in the global fashion e-commerce market.”

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