Home Business News Boohoo rakes in record sales

Boohoo rakes in record sales

by LLB Editor
14th Jan 20 10:18 am

Boohoo group revenue rose a record 44% in the four months to 31 December, the online fashion retailer reports.

Chief executive John Lyttle said: “I am delighted to report the group has enjoyed record trading in the last four months of 2019. All of our brands have performed exceptionally well and delivered strong market share gains.

“We have continued to see operating leverage in our more established brands, and will continue to invest into them and our newly-acquired brands.

“The newly-acquired brands, MissPap, Karen Millen and Coast, are showing great promise and open different target markets for the group, in line with our strategy to build our multi-brand platform.”

Russ Mould, investment director at AJ Bell, said: “Online ‘fast fashion play’ Boohoo shows no signs of slowing down. At a time when many traditional clothing retailers are struggling, the company is continuing to prove the benefits of its purely online operation, emerging as one of the sector winners from the crucial festive period.

“Impressively, growth is actually accelerating from the autumn according to a four-month update encompassing Christmas and Black Friday trading. Against this backdrop a very modest retreat in margins is likely to be forgiven by the market.

“The business has demonstrated its ability to move quickly to respond to the fluctuating tastes of the young women which represent its core demographic of 16 to 24 year olds.

“This group will benefit from an increased National Living Wage and they are arguably less burdened by things like mortgages and children. As such, they may have enough disposable income to be able to regularly shop at Boohoo given its products are relatively inexpensive.

“Smaller brand Nasty Gal is the star of the show in the latest trading update but the more established Pretty Little Thing and eponymous Boohoo brands are also churning out impressive levels of growth.

“Attempts to branch out by acquiring once successful high street brands Coast and Karen Millen are as yet unproven. If successful this could offer another avenue of growth for the company, with the potential to pick up other ailing high street operations with lingering brand appeal on the cheap.”

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