Skip to content
Search

Latest Stories

UK’s Fashion Retailer Boohoo Raises Its Sales Guidance Amid Robust Business

UK’s online fashion retailer Boohoo raised its sales guidance on Wednesday (26) as it beat forecasts with a 22 per cent first-half profit rise, underlining Britain's rapid shift to online shopping.

Founded just 12 years ago in Manchester, northern England, Boohoo has expanded quickly, listing its shares in 2014 and buying the PrettyLittleThing and Nasty Gal brands last year.


British clothing retailers like Marks & Spencer and Debenhams have seen profits slump and are closing stores, but pure internet players like ASOS and Boohoo are tapping-in to a generation of consumers who shop on their mobile phones and share fashion tips via social media.

Shares in Boohoo, which sells own-brand clothing, shoes, accessories and beauty products, largely to 16 to 30-year-olds, were up by 9 per cent to 209 pence at 08.13 GMT.

The rise gives Boohoo a market capitalisation of £2.39 billion, which is some 20 times the equity value of the 240-year-old Debenhams.

Boohoo said its pretax profit was £24.7 million in the six months to August 31, up from £20.3m pounds in the same period last year, on revenue up 50 per cent to £395.3m.

ASOS, which is 18 years old and unlike Boohoo sells third party brands as well, is due to update on trading on October 17. Its shares were up 2.2 per cent.

"All of our brands performed extremely well across all territories as we continue to gain market share," said Boohoo's joint CEOs Mahmud Kamani and Carol Kane.

Together the Kamani family and Kane own 36 per cent of Boohoo's equity.

Standout Performer

PrettyLittleThing was the standout performer in the business, with its revenue soaring 132 per cent despite the relocation of its distribution centre to Sheffield, northern England, during the period.

The core Boohoo brand's distribution centre in Burnley is also being extended, giving the group a network capable of generating £3bn of net sales globally.

For the full-year to February 28, 2019, Boohoo forecast revenue growth of 38 per cent to 43 per cent, up from previous guidance of 35 per cent to 40 per cent, with adjusted EBITDA margin of between 9 per cent and 10 per cent.

Medium-term guidance of sales growth of at least 25 per cent per annum and EBITDA margin of 10 per cent was also reiterated by the firm.

Last week Boohoo appointed John Lyttle, the current chief operating officer at Primark, as its new chief executive, with effect from March next year, on a pay package that could earn him almost £58m.

The package includes the possibility of a £50m share plan payout if Boohoo's market value hits £5.6bn in five years.

"With 11.7 million active customers across the brands, expanded distribution capacity, successful marketing campaigns, 41 per cent of the business now outside the UK, and a rising cash balance on the balance sheet, boohoo seems very well positioned to continue its impressive growth trajectory," said analysts at Jefferies, who have a "buy" stance on the stock.

On Tuesday (25) clothing retailer Next forecast flat profit for the full 2018-19 year after two straight years of decline. Its online business is growing strongly while sales at its stores continue to decline.

Next pointed to the problems this creates - as retail sales decline many fixed costs remain but as online sales grow its variable costs increase ($1 = £0.7599 ).

(Reuters)

More For You

single-use vapes-iStock

Analysis by Material Focus estimates that 8.2 million vapes are discarded or littered each week in the UK—equivalent to 13 every second. (Representational image: iStock)

iStock

Shops told to clear single-use vapes before ban starts on June 1

SHOPS across the UK have until 1 June 2025 to sell off remaining stocks of single-use vapes before a nationwide ban comes into force.

The legislation, confirmed last year, follows a government consultation that showed strong support for restricting their sale and supply.

Keep ReadingShow less
Primark-London-Getty

During his 15-year tenure, Marchant expanded Primark’s store network to more than 450 locations across 17 countries in Europe and the United States. (Photo: Reuters)

Primark chief Paul Marchant steps down after misconduct probe

PAUL MARCHANT, the head of fashion retailer Primark, has resigned with immediate effect after admitting to an "error of judgment" in his behaviour towards a woman in a social setting.

Associated British Foods (AB Foods), Primark's parent company, announced his resignation on Monday.

Keep ReadingShow less
Jaguar’s bold gamble: Can it woo young, wealthy drivers with a £123k EV?

Jaguar’s bold gamble: Can it woo young, wealthy drivers with a £123k EV?

JAGUAR’S ambition to seduce younger, richer drivers was on full display in Paris with a presentation of its newest prototype, the Type 00, which promises all-electric luxury... at a steep price.

The low-slung, muscular-looking concept car presented to European reporters last Friday (21) prefigures a production model expected mid-2026 at a base cost of €150,000 (£123,472.8).

Keep ReadingShow less
Starmer-Trump-Getty

Trump has suggested the possibility of a 'great' trade deal that could help the UK mitigate the impact of tariffs he has pledged to introduce. (Photo: Getty Images)

Starmer, Trump talk trade deal progress in 'productive' discussion

KEIR STARMER and Donald Trump spoke on Sunday about ongoing UK-US trade negotiations, with Downing Street describing the talks as "productive."

Since leaving the European Union, the UK has been working to secure a trade agreement with the United States. Successive British governments have pursued a deal, but it has remained elusive.

Keep ReadingShow less
modi-trump-getty
Trump shakes hands with Modi during a joint press conference at Hyderabad House in New Delhi on February 25, 2020. (Photo: Getty Images)

India-US trade talks end with no sign of tariff relief

INDIA and the United States have agreed to move forward on finalising a part of their bilateral trade deal this year, but there was no indication of any tariff relief for India.

Trade discussions took place in New Delhi ahead of the implementation of US president Donald Trump's new trade tariff regime, which includes import levies on India, set to take effect from 2 April.

Keep ReadingShow less