Online fashion giant Boohoo has increased its guidance after “record trading” in the last quarter.
In a trading update for the four months to December 31, the Manchester-headquartered retailer said group revenue growth for the financial year to February 29 is expected to be 40 to 42 per cent, up from previous expectations of 33 to 38 per cent.
Group total revenue for the last quarter rose 44 per cent year-on-year to £473.7m, up from £328.2m reported in 2019.
In the 海角视频 market alone, the group saw revenue increase 42 per cent year-on-year to £255.8m, up from £180m in 2019, while revenue grew 57 per cent to £110.6m, up from £70.4m for the same period the previous year.
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.”
Most Read
Adjusted EBITDA margin is also expected to be between 10 to 10.2 per cent, where previous guidance was “around” 10 per cent, the group reported.
John Woolfitt, director of trading at Atlantic Capital Markets said investors will take the trading up as “additional confirmation” that “you have to focus on the online retailers” if investing in the 海角视频 retail sector.
He said: “Its not all doom and gloom for retail, well at least not if you are operating online”.
“The fast fashion king Boohoo has today hiked guidance after a record quarter and investors will be pleased with the progress the group has made in 2019.
“The integration of new acquisitions such as Miss Pap, Karen Millen and Coast will add to earnings potential over the coming year to build on what has been a very successful festive trading period.”
The group's flagship Boohoo brand saw revenue increase 42 per cent, with year-to-date revenue at £513.7m, marking an increase of 38 per cent.
PrettyLittleThing revenue reached £190.8m, up 32 per cent, with year-to-date revenue up 37 per cent to £428.4m, while NastyGal revenue hit £41.5m, up 102 per cent, with year-to-date revenue up 123% to £85.3m.
Don’t miss
Russ Mould, investment director at AJ Bell, said NastyGal was the “star of the show”, but the Pretty Little Thing and Boohoo 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.”