This week online fashion giant Boohoo posted record revenue over 1 billion
pounds, beating estimates for what was an outstanding first half.
Steve Miley, a senior market analyst at www.asktraders.com told
FashionUnited celebrity endorsements from the likes of Jordyn Woods played
a big role in the bump in revenue.
“Over the 6 months to 31 August 2019, the group’s revenue has recorded a
staggering 43 percent increase to 564.9m pounds over the period with the
Boohoo and Pretty Little Things brands recording 34 and 43 percent increase
in sales. Nasty Gal has revenue more than doubled over the period. The
international sales have grown 55 percent increasing the contribution to
total revenue to 44 percent. New apps developed in house for boohoo, boohoo
Man and Nasty Gal (that were released over the period) have contributed to
the increase in sales.
Back in August Boohoo acquired Karen Millen and Coast for 18.2 million
pounds out of administration, increasing the number of brands under its
umbrella. Earlier in September the company upgraded the revenue growth
expectation for the year to be between 33 and 38 percent above its previous
25 to 30 percent guidance.
The number of active customers over the period have increased 30 percent to
13 million, with an average spend of 43.26 pounds, also a slight increase.
Adjusted profit before tax has a similar increase to the sales figure,
growing by 45 percent to 51.8 percent whilst the earnings per share
increased 78 percent to 2.48 percent. The automation of the Burnley
distribution centre has contributed to increase the efficiency of the
operation.
The company has reiterated the guidance from earlier this month but
mentioned that the medium-term target is for an organically sales growth of
25 percent with EBITDA margin of 10 percent. The company cash position will
allow to acquire further complementary brands to increase the demographic
it appeals to.”
