25th Apr 2018 09:11
LONDON (Alliance News) - Shares in online fashion retailer boohoo.com PLC rose on Wednesday after it reported a significant jump in both revenue and profit for its recently ended financial year.
Shares in boohoo were up 15% at 177.00 pence early Wednesday.
For the twelve months to the end of February, revenue nearly doubled to GBP579.8 million from GBP294.6 million the year prior, as pretax profit climbed 40% to GBP44.3 million from GBP30.9 million.
The company said it saw strong revenue growth across all geographies, with UK up 95% and international up 99%.
Among divisions, boohoo and boohooMAN revenue rose 32% to GBP374.1 million with a gross margin of 51.2%, down 330 basis points due to "planned investments" in its customer proposition.
PrettyLittleThing - acquired late 2016 - saw revenue more than triple to GBP181.3 million over the comparable 12-month period, with a gross margin of 55.2%. Nasty Gal's revenue came in at GBP24.4 million, with sales and customer growth "both strong" from start-up on at the beginning of March last year.
The company said it has made a strong start to its current financial year, with group revenue growth in the year ahead expected to be 35% to 40%, with an adjusted earnings before interest, tax, depreciation and amortisation margin between 9% to 10% and capital expenditure of GBP50 million to GBP60 million.
PrettyLittleThing is due to move into its own warehouse in the first half of the current financial year, boohoo said, bringing "incremental sales capacity" in addition to that at the firm's Burnley operations.
"The group made great progress during the year, integrating a new company, PrettyLittleThing, and a new brand, Nasty Gal, into the boohoo group. Revenue from boohoo continued to grow strongly, whilst there has been an exceptional performance from PrettyLittleThing, and Nasty Gal exceeded our estimates in its first year," said Mahmud Kamani and Carol Kane, joint chief executives.
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