Boohoo online fashion chain sees sales and profits surge

Boohoo online fashion chain sees sales and profits surge

Online fashion firm Boohoo has reported strong full-year sales and profits.

The group saw a 97% leap in revenue to £579.8m in the year to March, as pre-tax profit rose 40% to £43.3m.

Growth was helped by the recently acquired Pretty Little Thing, which experienced a 228% rise in sales to £181.3m.

Bosses Mahmud Kamani and Carol Kane said the results had been achieved against the “backdrop of difficult trading in the UK clothing sector”.

‘Gathering momentum’

They added: “Revenue from Boohoo continued to grow strongly, whilst there has been an exceptional performance from Pretty Little Thing, and Nasty Gal exceeded our estimates in its first year.

“Our international business showed higher growth rates and we are pleased with its gathering momentum.”

The firm said Boohoo now has 6.4 million active customers, up 22% on last year.

Shares in Boohoo were up 14.5% in morning trade in London.

The Manchester-based company has seen sales and its share price soar in recent years, as younger customers have been won over by its relatively low prices on up-to-date fashion.

Boohoo’s business model, known as “test and repeat”, is built around market-testing a wide range of items on its site. The ones that prove popular are then reordered.

By manufacturing half of its products in the UK, the firm says it can offer typical turnaround times for new styles of about four to six weeks.

Rather than rely on traditional marketing, Boohoo focuses on social media influencers, bloggers, student campus tours and events such as shoots with reality TV stars from the hit summer show Love Island, in order to win over its target market of 16-30 year olds.

Source: BBC News

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