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Boohoo boosts full-year guidance after sales jump

British online retailer Boohoo has recorded a steep uptick in its sales.

The online fashion firm told the City in an unscheduled update that buyers bought more of its products than it had projected in the first six months of its year.


The company expects its sales for the year ending in February 2020 to grow by up to 38 per cent, compared with its previous guidance of 30 per cent.

Boohoo is scheduled to report first-half financial results on September 25.

The company expects earnings before EBITDA (interest, tax, depreciation and amortisation) margins for the financial year to remain at around 10 per cent - in line with previous guidance.

Its profit guidance shows recent merger and acquisition activity in the first-half of the financial year when it acquired Miss Pap, Karen Millen, and Coast.

It also runs sister brands Nasty Gal and Pretty Little Thing.

Manchester-based Boohoo was founded by Carol Kane and Mahmud Kamani in 2006.

The firm, which is valued at £3.3 billion, has now overtaken its rival Asos as the country’s favourite online clothing seller.

Amid Brexit uncertainties, the company is also easily beating High Street retailers.

Boohoo is now expected to report revenues of up to £1.1 billion this year, compared with £859.6m last year.

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Frasers slams Debenhams over £222 million pay scheme

Highlights

  • Debenhams pushes ahead with executive pay scheme worth up to £222 m without shareholder approval.
  • CEO Dan Finley could earn up to £148 m if share price reaches £3 over next five years.
  • Frasers Group, holding 29.7 per cent stake, calls move "utterly disgraceful" amid long-running corporate tussle.
Struggling British online fashion retailer Debenhams has sparked outrage from its biggest investor after deciding to implement a new executive pay scheme worth up to £222 million without seeking shareholder approval.

Frasers Group, which holds a 29.7 percent stake in Debenhams, condemned the move through its chief financial officer Chris Wootton on Thursday. "Typical corporate governance from them, utterly disgraceful," Wootton said, criticising the retailer's decision to bypass investors.

Under the new incentive scheme, Debenhams CEO Dan Finley could earn up to £148 m and CFO Phil Ellis up to £14.8 m if the company's share price hits £3 over the next five years. Debenhams shares were trading at 22.25 pence on Thursday, down 3.3 percent.

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