Sales and profits surge at online retailer Boohoo

Online fashion retailer Boohoo has unveiled a bumper profits haul as sales continue to surge at the fast growing firm.

The firm saw revenue grow 48% to £856.9 million in the year to February 28, and pre-tax profit jumped 38% to £59.9 million.

Turnover was up 37% in the UK and 64% in international markets.

Boss John Lyttle, who took up the top job last month, said: “I am very excited to have joined the Boohoo group at this key stage of its growth, with the group’s disruptive and proven business model having delivered yet another excellent set of financial and operational results.

“In my short time within the business, I am delighted to have been able to meet a number of hugely talented people and have already been able to see many parts of the business.

“This has confirmed my belief and optimism that the group’s investments into its brands and infrastructure have allowed it to develop a scalable multi-brand platform that is well-positioned to disrupt, gain market share and capitalise on what is a truly global opportunity.”

Mr Lyttle replaced joint chief executives Mahmud Kamani and Carol Kane in March, with the duo taking up the roles of executive chairman and executive director respectively.

The figures showed that revenue at Booho’s PrettyLittleThing sub-brand grew 107% to £374.4 million and Nasty Gal saw sales rise 96% to £47.9 million.

Boohoo added that trading in the first few weeks of the new financial year has been “encouraging”.

Revenue growth over the next 12 months is expected to be 25% to 30% with an adjusted earnings margin of around 10% and capital expenditure in the region of £50 million to £60 million.

The retailer is targeting sales growth of 25% per year in the medium term.

Boohoo started life in Manchester in 2006, before snapping up PrettyLittleThing and Nasty Gal in 2017.

It now has more than 11 million customer accounts across its brands worldwide.

Boohoo shares were trading nearly 4% higher this morning at 224.6p.

Sophie Lund-Yates, equity analyst at Hargreaves Lansdown, said: “The pain facing retailers is rife, from traditional bricks and mortar brands, to the likes of online players. Once again Boohoo looks to be bucking the trend.

“The group’s ability to keep taking market share from competitors comes from a successful blend of excellent social media engagement, scalable platform model and a strong track record when it comes to executing operational changes.”