29th Sep 2015 07:08
LONDON (Alliance News) - Boohoo.com Tuesday reported a rise in profit in the first half of its financial year as revenue grew more than initially expected on the back of new customers, and it said that sales in the full year will also increase above prior expectations.
The online fashion retailer said that its pretax profit in the six months ended August 31 rose 39% to GBP6.3 million from GBP4.5 million the year before, while revenue grew 35% to GBP90.8 million from GBP67.2 million, beating its initial expectations.
Geographically, revenue was up 30% in the UK, 19% in the rest of Europe, and 65% in the rest of the world. It said the latter was driven by a strong performance in the Australian and US markets while growth in Europe was hindered by the weak euro.
Boohoo.com said as a result of the strong first-half revenue growth, it now expects sales for the full year to increase by between 30% and 35%.
"We are pleased to report a successful first half, with strong revenue growth driven by acquiring new customers through our investments in price, promotions and marketing spend. We continue to invest in our brand internationally and our strategy to focus on key markets where we see the greatest growth potential remains unchanged," joint Chief Executives Mahmud Kamani and Carol Kane said in a statement.
"The autumn/winter marketing campaign #WeAreNow is supporting a good start to the second half. We are also pleased with the response to our new app and responsive websites and will continue to invest in building customer value and market reach in the second half of the year," they added.
Shares in Boohoo.com were trading up 3.4% at 34.12 pence at the open on Tuesday.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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