Deals

Online fashion giant boohoo has announced sales growth and the acquisition of two British high-street fashion brands in its latest quarterly results.

It has acquired the intellectual property of women’s fashion retailers Oasis and Warehouse, both of which went into administration in April,  for £5.25m in cash from Hilco Capital Limited.

In the coming months boohoo will integrate Oasis and Warehouse onto its platform.

In their most recent financial year ending February 2020, unaudited management information shows that Oasis and Warehouse generated direct online revenues of £46.8 million in aggregate.

The deal is the latest in a string of high-street fashion acquisitions, which last  year included an £18m deal for Karen Millen and Coast, which the firm said continue to trade strongly after integration.

In May the firm also completed the purchase of the remaining minority interest in prettylittlething.com.

Boohoo’s first quarter revenues totalled £367.8m, up 45% year on year, with strong underlying growth across boohoo, Pretty Little Thing and Nasty Gal.

IT reports that tading in the middle of March through to early April was “mixed”, citing the COVID-19 pandemic for a decrease in year-on-year growth.

It said that since April, performance across all of its brands and geographies have recovered, with a “robust performance” in May.

The firm’s plans include investment in its infrastructure and operations to support future growth ambitions, with capital expenditure expected to be in the region of £60 – £80m.

It said it expects revenue growth of 25% for the financial year ending February 2021.

John Lyttle, boohoo group  CEO said :”During unprecedented and challenging times, the Group has delivered a very strong trading and operational performance.

“I am proud of how our colleagues and business partners from around the world have responded to ensure that we can safely bring to our customers the latest fashions, great value, fantastic prices and best in class service.

“Whilst there is a period of uncertainty within the markets in which we operate, the Group is well-positioned to continue making progress towards leading the fashion e-commerce market globally.”