25th Sep 2019 08:58
(Alliance News) - Online fashion retailer boohoo Group PLC on Wednesday reported "significant market share gains" in a first half during which revenue rose across all brands and profit grew sharply.
In the six months to August 31, revenue increased by 43% to GBP564.9 million from GBP395.3 million a year ago, with pretax profit growing by 83% to GBP45.2 million from GBP24.7 million. Profit growth was helped by both the revenue rise and a non-repeat of GBP6.4 million in warehouse relocation costs recorded last year.
PrettyLittleThing, Nasty Gal and the core boohoo brand all delivered strong growth, the retailer said.
boohoo revenue rose by 34% to GBP281.0 million from GBP209.0 million a year ago and in PrettyLittleThing by 41% to GBP237.6 million from GBP168.6 million. Nasty Gal more than doubled its interim revenue to GBP43.9 million from GBP17.7 million.
Active customers, another key performance indicator, rose by 30% to 13.0 million from 10.0 million in the same period in 2018. Number of orders rose by 38% to 20.3 million from 14.7 million and average order value grew by 6.6% to GBP43.26 from GBP40.57.
The company said it is "increasing market share through highly effective marketing strategies", as it continues to benefit from "high profile celebrity campaigns influencer associations, and digital and traditional marketing initiatives".
In August, boohoo bought the Karen Millen and Coast brands, after adding MissPap to its portfolio in March.
Chief Executive John Lyttle said: "It has been a fantastic first half of the year for the group. We have delivered significant market share gains across all of our key markets, and for the first time in our history, revenue has exceeded GBP1 billion in the last 12 months.
"We have delivered strong growth and operating leverage in our more established brands and will continue to invest in both our more established and newly-acquired brands. We enter the second half of the year well-placed and confident that our platform, which combines the latest fashion, great prices and excellent customer service, all underpinned by a well-invested infrastructure, will deliver further market share gains."
The company maintains a "highly positive outlook for online fashion globally" with growth in the UK, its largest market, and globally remaining strong.
The retailer is guiding for full-year revenue growth of between 33% and 38%. In its year ended in February 28, boohoo recorded a revenue of GBP856.9 million.
Shares were 3.6% lower at 256.30 pence each in London on Wednesday morning
By Eric Cunha; [email protected]
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