Online fashion retailer Boohoo.com has announced a new automated “super site” warehouse following a fundraise of £50m on the stock market and a 106 per cent increase in first quarter sales.
Aimed at the 16-24-year-old market, the Manchester-based firm has been growing fast over recent months with the purchase of the PrettyLittleThing and Nasty Gal brands.
Boohoo revenues rose to £120.1m in the three months to 31 May 2017, a figure which is up from £58.2m a year ago. Founder Mahmud Kamani and family members Rabia Kamani, and Nurez Kamani also sold around £80.5m of shares.
The group’s high growth has meant that plans for a new automated ‘super site’ warehouse is also in the works which will provide capacity for over £2bn of net sales.
The new site, which is expected to cost around £150m, will add an additional 600,000 sq ft to the company’s existing site and take roughly three years to complete.
Zeus Capital directors Nick Cowles, Andrew Jones and Jamie Peel, acted as nominated adviser, joint broker and joint bookrunner on the transaction.
Cowles said: “This transaction is a significant milestone for boohoo, with the new funds generated to support its ongoing expansion plans.
“Following a remarkable start to the year, with sales more than doubling, the investment in a state of the art warehouse will enable the business to increase its sales capacity and continue to satisfy the growing demand for its products.
“The transaction also marks the first realisation of shares for the Kamani family since boohoo’s 2014 flotation. From its £560m valuation on admission, the management team have overseen a remarkable period of growth, with the company now valued at nearly £2.5bn.”
Boohoo.com joint chief executives Mahmud Kamani and Carol Kane said,”Our performance in the first quarter has been very encouraging across all brands and geographic regions.
“While it is early in the financial year, boohoo continues to perform well and PrettyLittleThing delivered exceptionally strong revenue growth in the first quarter as it continues to expand its young female customer base.
“Nasty Gal has made a promising start since we acquired the brand, with revenues growing strongly month-on-month, as we increased the product range.
“Across the group, the combination of broadening product ranges, strong brand image, competitive prices and good customer service continues to drive sales momentum, whilst the inclusion of our new brands is proving the potential of our multi-brand strategy in delivering strong Group revenue growth.”
The news comes alongside a planned extension to the company’s existing Burnley site, which is on track to be completed in early 2018. Adding 900,000 sq ft to the existing 996,000 sq ft of storage available, the move will provide capacity for a £1bn net sales operation.