Advertise with

The group's share price up 42% so far this year as it posts stellar sales for its first quarter.
The group's share price up 42% so far this year as it posts stellar sales for its first quarter.

British online fashion retailer Boohoo bucks subdued industry trend


Business Live - Jun 13th, 09:12

British online fashion group Boohoo bucked a tough retail market with robust sales growth in its latest quarter as its offer of cheap clothing, delivered quickly, chimed with shoppers. 

Boohoo, which sells own-brand clothing, shoes, accessories and beauty products, said that revenue rose 39% to £254.3m in its first quarter, the three months to May 31. The group achieved strong revenue growth across all geographies, with UK sales up 27% and international up 56%. Its gross margin was 55%.

Founded just 14 years ago in Manchester, Boohoo grew fast, listing in 2014 and buying the PrettyLittleThing and Nasty Gal brands in 2017. The group is tapping into a generation of younger consumers who shop on mobile phones and share fashion tips through social media.

The group kept its guidance for the full 2019-20 year, revenue growth of 25% to 30%, with a core (adjusted ebitda) profit margin of about 10%.

Boohoo's share price, up 42% so far this year, was 230.1p at close of trade on Tuesday, valuing the business at £2.67bn.

While Boohoo thrives, the wider sector is struggling. Last week, an industry survey report said British shoppers cut back spending in May by the most in more than 20 years, raising questions about how long consumers can keep on cushioning the economy from Brexit.

Fashion retailer Ted Baker's share price fell more than 25% after a profit warning.

While Boohoo is growing fast, peer Philip Green’s Topshop-to-Dorothy Perkins Arcadia fashion group is battling to survive.


Read more about: retail market | fashion | retailer | retail | boohoo

Related News

CBD oil product launching countrywide in Clicks and Dis-Chem
15/10/2019 - 14:43
South Africa’s top health and beauty retailers, Clicks and Dis-Chem, are both rolling out the Elixinol range of CBD full-spectrum extract products in October.

Checkers launches long-awaited rewards programme
15/10/2019 - 12:20
The wait is over - Checkers Xtra Savings is here! Africa’s largest supermarket group has introduced its latest initiative that shows their loyalty to customers, and not the other way around.

Hyde Park Corner celebrates 50 fabulous years with customers
14/10/2019 - 15:20
Hyde Park Corner is celebrating its golden anniversary with '50 & Fabulous’ celebrations that include exciting events, lucky draws, prizes, special offers, opportunities to give back, milestone exhibits and a whole lot more in October and November.

Retail apocalypse narrative might be over-exaggerated
14/10/2019 - 13:55
There are two sectors on the JSE that have fallen out of favour - Property and Retail.

Christmas is coming: 3 ways retailers can ensure a more profitable festive season
14/10/2019 - 10:29
According to Stats SA, retail figures for December 2018, showed an annual decline of 1.4% instead of the expected 2.1% growth. It seems like brick-and-mortar stores are battling against depleting footfalls and decaying consumer confidence.