The Boohoo Group has grown beyond expectations, it announced today.
The Manchester-headquartered online fashion giant said full-year sales growth is predicted to be between 33 and 38 per cent, where previous guidance was between 25 and 30 per cent.
Following the announcement, share prices for the Boohoo Group today reached an all-time high at 285.80p.
Boohoo also predicted earnings before interest, tax, depreciation and amortisation (EBITDA) margins for the financial year will remain at around 10 per cent, which it said reflects “anticipated investments across the financial year into the three brands acquired by the group in the first half”.
The announcement comes ahead of its interim results which will be published on September 25.
Russ Mould, investment director at AJ Bell, said Boohoo’s announcement is “encouraging”.
He said: “While it doesn’t match the levels seen in the previous financial year, it does provide some reassurance that Boohoo isn’t struggling like much of its peer group.”
“Equally positive is the fact that margins aren’t being squeezed which suggests it isn’t slashing prices simply to shift stock and push up sales.”
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He continued: “The company is clearly on a roll and offering customers a wide range of products which are seemingly ‘on trend’ and at the right pricing point.
“Shareholders are lapping up the benefits of this successful business model. Boohoo’s shares are now at a new record high and it is comfortably the biggest stock on the AIM market at £3.3bn; that is now significantly ahead of fashion rival ASOS’s £2bn valuation.”
The announcement follows the group’s acquisition of the online businesses of fashion brands Karen Millen and Coast in August and the MissPap brand in March.
Boohoo acquired clothing brands brand NastyGal and PrettyLittleThing in 2017.
As of 28 February 2019, the group said it had around 13m active customer accounts worldwide across its brands.