Boohoo ups forecasts as sales soar

Online fast fashion giant Boohoo has said its sales for the year would be higher than previously expected after they soared during the summer.

The Manchester-based business said revenue for the year was now expected to jump between 33% and 38%, after previously forecasting growth of between 25% and 30%.

Boohoo also said earnings for the year were expected to remain in line with expectations, as it drives investment into brands it acquired during the year.

The retailer, founded in 2006 by Mahmud Kamani and Carol Kane, has seen shares surge recently, with its market value recently overtaking rival ASOS.

Its growth comes amid a malaise across the retail sector driven by sliding footfall as customers continue to shift online and economic and political uncertainty hits consumer confidence.

Analysts at Jefferies hailed the “stellar performance” by the online retailer as it benefited from warm summer weather.

The company said its strong revenue growth would drive operating leverage across its key brands, including three businesses acquired over the past year.

Last month, the retailer departed from its previous acquisition model of buying brands targeting young consumers to snap up upmarket womenswear retailer Karen Millen.

Alongside Karen Millen, Boohoo also acquired the Coast brand, after also purchasing the assets of young women’s online fashion business MissPap in March.

In the first quarter of 2019, Boohoo said first quarter group revenues surged by 39% after strong growth across all its brands. The group also owns Pretty Little Thing and Nasty Gal.

Recently hired chief executive John Lyttle helped guide the company to a better-than-expected £254.3 million revenue in the “strong” period to May.

Boohoo said further guidance will be given when the group announces its interim results on 25 September.

Shares in the company jumped 13.4% to 276p in early trading on Thursday.