12th Sep 2014 07:30
LONDON (Alliance News) - Online fashion retailer Boohoo.com PLC Friday said revenue growth accelerated in the second quarter of its financial year, boosted by new website launches, as the brand continues to expand its international presence.
In a trading update for the first-half, boohoo.com said it continues to trade in line with expectations for the full-year, after revenue in the six months to the end of August increased to GBP67 million, up 31% on a reported basis on last year, and 36% at constant exchange rates.
"Revenue growth during the first half has continued to accelerate in line with management expectations with second quarter revenue growth of 37% or 41% [constant currency basis] up from 24% and 28% respectively in the first quarter," the company said.
Boohoo's core market is 16-24 year old consumers, but unlike its main online fashion retail rival ASOS PLC, boohoo only sells its own-branded women's and men's fashion, while ASOS sells mainly third party brands alongside its own branded range.
Boohoo said improvements in growth were seen across all regions in the second quarter, with UK sales and the rest of Europe both up 50% on a reported basis, and the rest of the world up 8%.
Similar to ASOS, boohoo has said that currency movements are taking its toll on countries such as Australia.
"The second quarter saw an accelerating sales trend as a result of management stepping up investment in customer recruitment, enhancement of the proposition in Europe through the launch of local language sites and a rebasing of prices in Australia," said Investec analyst Kate Calvert in a research note.
Back in June, boohoo said it was excepting revenue growth to accelerate throughout the current year as comparatives become less demanding and it increases its marketing spend.
Some analysts believe investments in marketing, customer recruitment and overheads will skew boohoo's profit towards the second-half of the year.
Investec's Calvert said Friday that with comparatives in the second-half beginning to ease at a time when sales growth is accelerating, it is confident that the retailer will hit its own full-year forecast of earnings before interest, taxes, depreciation and amortisation of GBP19.5 million for the year ending February 28, 2015.
"Boohoo.com continues to do the simple things well and in the volatile online retail arena, that is to be welcomed," said Jefferies analyst David Reynolds in a research note.
Boohoo said it will announce its interim results on October 14.
The company's stock was trading 8.66% higher at 44.55 pence per share shortly after the market open Friday.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Boohoo