Boohoo enjoys strong revenue increase
Boohoo.com saw its revenue climb by 45% in the four months to the end of December as the online fashion retailer enjoyed encouraging trading across all of its regions.
Revenue in the UK also rose by 45% while revenue in the retailer’s Rest of Europe and Rest of World businesses increased by 33% and 52% respectively.
Mahmud Kamani and Carol Kane, joint chief executives of Boohoo.com, said: "Trading in the four months to 31 December 2015 has been very encouraging across all regions. We have continued to optimise the mix of promotional and marketing spend to drive strong retail growth, reducing the proportion of marketing expenditure, offsetting the 290bps decline in retail gross margin, which includes the adverse impact of exchange rate movements. Gross margin has also been impacted by 130bps due to the growth in third party sales.”
The company said investments in the customer proposition have resulted in higher conversion rates, increased order frequency and lower customer acquisition costs.
Kamani and Kane added: “Operational successes include the new warehouse extension entering into full service, giving us the capacity required for business expansion, and the new UK app, which has improved the overall shopping experience.”
Looking ahead, the company now expects revenue growth for the full year to be marginally above the previous guidance of 30% to 35%.
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