Shares in online fashion firm reach record highs
Shares in online fashion firm Boohoo have hit a record high.
The Manchester based company is now worth £3.3bn – the biggest on the AIM market.
The firm issued a trading statement this morning saying the group’s performance is exceeding expectations, with strong revenue growth driving operating leverage across key brands.
As a result the value of the shares increased by 16.46% to £283.34.
The trading update for its first half 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.
Last month Boohoo announced the acquisition of renowned British brands Karen Millen and Coast.
Russ Mould from Stockbroker AJ Bell said: “It is very encouraging to see online fashion retailer BooHoo raise guidance for the pace of sales growth.
“While it doesn’t match the levels seen in the previous financial year, it does provide some reassurance that BooHoo isn’t struggling like much of its peer group.
“Equally positive is the fact that margins aren’t being squeezed which suggests it isn’t slashing prices simply to shift stock and push up sales.
“The company is clearly on a roll and offering customers a wide range of products which are seemingly ‘on trend’ and at the right pricing point.”
He added: “Shareholders are lapping up the benefits of this successful business model.
“BooHoo’s shares are now at a new record high and it is comfortably the biggest stock on the AIM market at £3.3 billion; that is now significantly ahead of fashion rival ASOS’s £2 billion valuation.”
The company was founded by Mahmud Kamani and Carol Kane in 2006.
The business now has more than 11 million customer accounts across its brands worldwide, reportedly selling 50 dresses a minute.
Mr Kamani family is worth £1.2bn according to the Sunday Times Rich List.
