Boohoo defies retail gloom as sales soar higher
Boohoo sales have soared over the past four months, putting the online fast fashion retailer on track to surpass profit and revenue forecasts for the year.
The company continued its recent rapid growth to post a 44% jump in revenues to £473.7 million for the four months to 31 December.
Boohoo said it was pleased with growth across its core brands as well as recently acquired brands Karen Millen, Coast and MissPap.
This is the latest in a series of profit upgrades by the Manchester-based retail group which has gone from strength to strength in recent years despite wider challenges in the retail sector.
The group said it expects to deliver revenue growth of between 40% and 42% for the year to February 2020, ahead of its previous range of between 33% and 38% growth.
It added that profit margins are expected to be between 10% and 10.2%, just ahead of its previous forecast of 10%.
The Boohoo brand saw sales jump 42% over the past four months to £232.6 million, while sales of its PrettyLittleThing brand increased by 32% to £190.8 million for the period.
Fast-growing brand Nasty Gal continued to see sales surge, with revenues for the period rocketing 102% to £41.5 million.
Meanwhile, the firm also lauded the “successful integration” of the three brands it acquired last year.
Boohoo chief executive John Lyttle said: “I am delighted to report the group has enjoyed record trading in the last four months of 2019.
“All of our brands have performed exceptionally well and delivered strong market share gains. We have continued to see operating leverage in our more established brands and will continue to invest into them and our newly-acquired brands.
“The newly-acquired brands, MissPap, Karen Millen and Coast, are showing great promise and open different target markets for the group, in line with our strategy to build our multi-brand platform.”
In a separate announcement, the company also said it has appointed former JD Sports finance boss Brian Small, a current non-executive director, as the firm’s new deputy chairman.