Boohoo soaring as it fashions strong growth
ONLINE fashion firm Boohoo has revealed booming full-year sales and profits.
The Manchester-based group saw a 97 per cent leap in revenue to £579.8m in the year to March, as pre-tax profit rose 40pc to £43.3m.
Growth was aided by the recently acquired PrettyLittleThing brand, which experienced a 228pc 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.”
The joint CEOs said: “The group made great progress during the year, integrating a new company, PrettyLittleThing, and a new brand, Nasty Gal, into the Boohoo group.
“Revenue from Boohoo continued to grow strongly, whilst there has been an exceptional performance from PrettyLittleThing, and Nasty Gal exceeded our estimates in its first year.
“Against a backdrop of difficult trading in the UK clothing sector, the group continued to perform well, gaining market share in the expanding online sector. Our international business showed higher growth rates and we are pleased with its gathering momentum.”
Trading in the first few weeks of the next financial year has made a strong start.
Group revenue growth for the next financial year (FY19) is expected to be 35pc to 40pc with adjusted EBITDA margin between 9pc to 10pc and capital expenditure of £50m to £60m.
The bosses continued: “Looking beyond the current year we will continue to lead the market on value, service and proposition in all our key geographies.
“Whilst this will require a continued investment in people and infrastructure, we believe that the benefits of our investments in marketing and warehouse automation will generate economies of scale to allow us to drive sales growth of at least 25pc, whilst maintaining a 10pc EBITDA margin.”
The online fashion retailer was launched by Mahmud Kamani and Carol Kane in 2006. Leveraging their extensive experience in the fashion industry, the pair created a budget priced clothing business aimed at 16 to 24-year-olds.
In 2014, boohoo.com floated on the London Stock Exchange, with a valuation of £560m.