Boohoo forecast to double profits
Fashion fashion etailer boohoo is forecast to double its profits when it posts is year-end figures this week.
The Manchester-based business, which recently acquired the IP and certain assets to US business Nasty Gal, is predicted to post annual pre-tax profits of £29.6m up from £15.6m in the previous financial year, according to The Sunday Telegraph.
Sales are expected to have increased by £100m to £290.4m driven by its push into international markets and initiatives such as it move into the fast-growing affordable bridal market.
As well as Nasty Gal, which it bought from bankruptcy for $20m in Febuary and gives it a strong foothold in the US market, boohoo also acquired a 66% stake in young fashion brand Pretty Little Thing in December 2016 for £3.3m.
When it last updated the market in January it beat analysts' expectations with a 55% rise in sales in the four months to 31 December 2016. Sales for the four-month period hit £114.3m, while financial year to date sales (10 months to 31 December) were up 47% at £241.6m. Active customers were up 31% at 5.1m.
Boohoo was founded in 2006 and admitted to AIM in 2014. Rival fast fashion etailer Missguided recently appointed advisers to investigate a potential float or sale of the business, while Scottish fast fashion retailer Quiz is tipped for a float this summer.
