Boohoo fashions sparkling results
DESPITE recent investor wobbles Manchester-based online fashion retailer Boohoo.com stepped out in style with strong full year results.
Last week a profit warning from larger rival ASOS hit Boohoo’s shares and the Dale Street-based company was prompted to try and halt market concerns by reassuring them about its recent trading.
The results for the full year and for the first quarter of the current financial year should also do the same as the group revealed strong growth domestically and in its international roll-out plans, with transactional websites launched in France and most recently Spain.
Boohoo reported a 63% leap in full-year revenue to £109.8m, driven by recovering consumer confidence and Boohoo’s strong appeal to its demographic.
Profits more than tripled to £10.7m. Boohoo is unique in its sector given that it designs, sources, markets and sells own-brand clothing, shoes and accessories through its website to a core market of 16- to 24-year-olds.
In the year to February 28 Bohoo said its gross margin had grown an impressive 4.6% to 59.1%. Customer acquisition was strong too, with 2.3 million active shoppers, up 54% on the year before.
In the three months to May 31 Boohoo is continuing to enjoy strong growth with revenue of £30.7m up 24%, with UK revenue up 44%, and Rest of Europe up 36%.
Joint chief executives Mahmud Kamani and Carol Kane, said: “The company is well positioned to benefit from its transformation to becoming a PLC after its successful IPO.
“The management team is focused on further growth and since the year end we have accelerated that growth through an increase in marketing spend and activity to increase conversion in line with our revenue plans for the full year.
“We continue to trade in line with expectations for the full year and anticipate revenue growth to accelerate as comparatives become less demanding and as we increase our marketing spend in line with our targets.
“Looking ahead we are excited about our future growth prospects, delivering new foreign language websites and introducing additional currency options, as well as further improving our mobile website and customer experience.”
