Sep 27, 2016
UK online fashion retailer Boohoo raises outlook again
Sep 27, 2016
British online fashion retailer Boohoo.com on Tuesday upgraded its sales guidance for the third time in three months as it reported a more than doubling of first-half profit on the back of strong revenue growth driven by new customers.
The firm, which designs, sources and sells own-brand clothing, shoes and accessories online to a core market of 16-24 year-olds in Britain and globally, said on Tuesday it now expected revenue growth for the full year of 30-35 percent.
In August the group had upgraded its forecast to 28-33 percent.
Boohoo floated at 50 pence a share in 2014 but the stock was hammered after a profit warning in January last year. Its shares have since recovered strongly, closing Monday at 97.8 pence, valuing the business at 1.1 billion pounds.
For the six months to Aug. 31 Boohoo made core earnings of 16.5 million pounds ($21.4 million), up 117 percent, on revenue up 40 percent to 127.3 million pounds, reflecting a 28 percent rise in active customers to 4.5 million.
Gross margin fell 480 basis points to 55.3 percent, mainly reflecting planned price cuts and promotions.
Boohoo said comparative sales numbers for the second half are tougher than for the first. Significant investment in marketing and in IT is also planned for the second half.
It forecast a core earnings margin for the full year of about 11 percent.
© Thomson Reuters 2021 All rights reserved.