Boohoo posts strong first quarter sales growth
In the three months to 31 May, sales at online fashion retailer Boohoo rose by 48% to £86.4 million with sales in the UK up 41%. Sales in its rest of Europe business were up 44% while sales in the USA and rest of the world rose by 97% and 50% respectively. During the period, the number of active customers grew by 24% year-on-year to £5.2 million.
Sales at Pretty Little Thing reached £30.7 million while Nasty Gal’s revenue was £2.9 million.
Boohoo 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 Pretty Little Thing 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.”
As a result of the strong trading momentum in the quarter, Boohoo now expects group revenue growth for the full year to February 2018 to be around 60%, which is ahead of previous guidance of around 50%.
Boohoo also announced that it plans to raise £50 million through the placing of shares with new and existing institutional investors.
It will also construct a new automated super-site warehouse which will provide Boohoo with over £1.5 billion of net sales capacity, in addition to the estimated £1 billion net sales being provided by its Burnley site. The land acquisition of the new site, together with the construction, is expected to cost around £150 million over three years.
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