Boohoo's fast fashion sees revenue surge to £254m

Wednesday, June 12th, 2019 7:08pm

Online fashion company Boohoo defied a tough retail market in its first quarter after group revenue surged 39% to £254.3m.

Despite the result the group has kept its guidance for the full 2019-20 year at revenue growth of 25-30% with a core profit margin of around 10%.

Boohoo shares were down around 1% initially as its gross margins were squeezed but they closed 1% up.

Fortunes of the online retailer, whose brands include Nasty Gal and PrettyLittleThing, contrast sharply with rivals committed to the high street and tethered to shop space increasingly being abandoned by customers.

Mid-market clothing retailer Ted Baker posted a profit warning on Tuesday after Britain saw its biggest fall in retail sales on record in May.

Boohoo chief executive John Lyttle said: "The group has made a strong start to the year as we continue to disrupt and capture market share in the UK and internationally across all our brands.

"I'm delighted that the group topped the UK Hitwise rankings in May for the first time, demonstrating how our multi-brand strategy is really capturing our customers' attention.

"We have ambitious plans for the group, and continue to invest to ensure that our scalable multi-brand platform is well-positioned to disrupt, gain market share and capitalise on the global opportunity in front of us."

Boohoo's rosy outlook came on the same day as Zara owner Inditex reported a net profit of €734m (£652m) in the quarter to 30 April.

The Spanish fashion group which also counts Massimo Dutti and Bershka among its brands, bounced back from a weak start to 2019, when unseasonably cold weather in southern Europe curbed sales.

Sky News

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