Posted on September 27, 2016 by staff

Boohoo revenues rocket after international growth


Online fashion retailer Boohoo has seen revenues rocket on the back of strong international growth.

The firm, which sells its own-brand clothing, shoes and accessories online mainly to young adults, posted £127.3 million revenues for the six months ending 31st August, up 40 per cent on the same period a year earlier.

Sales were 38 per cent up in the UK as pre-tax profits climbed 129 per cent to £14.4m over the same period.

International sales now account for 36 per cent of total revenue after growing 41 per cent in Europe, 93 per cent in the US and 17 per cent in the rest of the world.

Boohoo joint chief executives Mahmud Kamani and Carol Kane said in a statement: “Our inclusive brand, unbeatable choice, together with our incredible prices and fantastic service, continue to inspire and appeal to young customers around the world.

“Through our constant focus on what matters to our customers, together with our investment in technology and operational improvements, we will continue to deliver profitable growth.

“As a result of our continued momentum in the UK and encouraging growth in selected overseas markets, we now expect revenue growth for the full year of between 30 per cent and 35 per cent, reflecting tougher second-half comparatives.

“Following the success in the first half of the year we will continue to look for opportunities to invest in marketing campaigns and our customer proposition to drive future sales growth and improve customer lifetime value.

“We will also be making significant investments in our IT systems and e-commerce platforms.”

This month rival website generated sales of more than £1 billion for the first time as parent company Shop Direct, which has harnessed the power of technology in a big way, announced a 44 per cent increase in profits before tax.

Boohoo said it is considering the acquisition of Pretty Little Thing, another online fashion retailer.

Iconic British brand BHS is to relaunch this week as a dedicated online retailer.