Online fast fashion retailer Boohoo has reached a major milestone as sales grew to more than £1bn for the first time.
CEO John Lyttle described the Manchester group’s financial performance as ‘fantastic’ as revenues climbed 43 per cent in the half-year to August 31, which meant it hit the £1bn milestone over the past 12 months.
Underlying earnings lifted 53 per cent to a better-than-expected £60.7m, while pre-tax profits jumped 83 per cent to £45.2m.
It told the market earlier this month that sales growth was outstripping its own forecasts, though it stuck by full-year profits expectations in its latest trading update.
Underlying earnings also grew to £115.1m over the full year.
Lyttle said: “It has been a fantastic first half of the year for the group. We have delivered significant market share gains across all of our key markets, and for the first time in our history, revenue has exceeded £1bn in the last 12 months.
“We have delivered strong growth and operating leverage in our more established brands and will continue to invest in both our more established and newly-acquired brands.
"We enter the second half of the year well-placed and confident that our platform, which combines the latest fashion, great prices and excellent customer service, all underpinned by a well-invested infrastructure, will deliver further market share gains.”
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Boohoo’s first half results showed sales growth of 41 per cent for PrettyLittleThing and 148 per cent for Nasty Gal - the brands it acquired in 2017.
Its core Boohoo business saw revenues rise 34 per cent.
The group confirmed recently acquired chains Karen Millen and Coast - which it snapped up in August - will begin trading online next month.
Its acquisition of the brands has been watched with interest, given their current High Street focus and older clientele.
Boohoo also said MissPap, which it bought in March, had seen revenues start to grow “rapidly since go-live in April”.
Nicholas Hyett, equity analyst at Hargreaves Lansdown said the group’s top line growth “is translating into profit in the pocket.”
“Margins are up as increased sales are put through the same fixed cost base, and with the current round of major capital projects complete, cash conversion has improved.
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“That’s left the group with a growing cash pile, which should allow Boohoo to invest behind the launch of recently acquired premium clothing lines Karen Millen and Coast.
“These more mature brands are a bit of departure for the group – which has been squarely aimed at teenagers.
"It’s a potentially lucrative market if the group can crack it, but only time will tell if influencer led marketing will resonate with a consumer base which is perhaps more familiar with Buffy than Cardi B.”