Boohoo share price soars after reporting accelerating sales growth

 
Catherine Neilan
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Boohoo: Sales have accelerated (Source: Getty)
Boohoo's share price soared six per cent this morning after revealing revenues will be up nearly a third for its first half.
The etailer, which went public in March, is expecting revenues to rise 31 per cent to £67m for the six months to August 31, it said in a trading update this morning, ahead of interims which will be published on October 14.
The pure-play retailer said growth was accelerating in line with expectations, with second quarter revenues rising to 37 per cent, up from 24 per cent in the first quarter.
Sales in the UK rose 50 per cent, and in the rest of Europe – where Boohoo has focused much of its launch activity in recent months – sales were up 61 per cent at a constant exchange rate. Rest of the world revenues rose eight per cent.
It continues to trade in line with expectations for the full year to 28 February 2015.
Analysts were bullish about the results.
Investec analyst Kate Calvert said:
Boohoo has invested heavily, e.g. expanding the warehouse to support £350m of gross sales, and is rightly doing so to future-proof the business. Given the expected sales trend, a current valuation of 15x CY15E EV/EBITDA is undemanding.
Independent analyst Nick Bubb, who worked on the IPO as part of Zeus Capital, said the business “continues to deliver the goods in no uncertain fashion”.
He added:
It will be interesting to see if Asos can come anywhere close to that growth in the same quarter, when they report on current trading on Tuesday, given their warehouse disruption.

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