Boohoo upgrades sales forecast on bumper Black Friday

Helen Cahill
Follow Helen LA Pop-up Store Launch Party with Galore Magazine
Boohoo targets fashion-forward millienials (Source: Getty)

Boohoo upped its revenue forecast today after it delivered record Black Friday sales across all of its brands.

The figures

For the four months ended 31 December, group revenue was up by 100 per cent. Boohoo's sales rose 25 per cent to £142.6m, Pretty Little Thing's sales were up 191 per cent to £73.8m, and Nasty Gal (which is in its first year) brought in £11.9m.

Read more: M&S sales slump could've been worse after "better" Christmas saves the day

The fashion group said it now forecasts full-year sales growth of 90 per cent, up from its previous estimate of 80 per cent growth.

At time of writing, Boohoo's share price was down one per cent at 205p.

Why it's interesting

Online-only Boohoo has had a meteoric rise, and has repeatedly upgraded its guidance for the 2018 financial year; the firm initially predicted 60 per cent sales growth. However, RBC analysts said Boohoo's performance was "good, but not good enough". The Boohoo brand's sales were one per cent below consensus estimates.

Read more: Boohoo moves forward with $20m acquisition of Nasty Gal

"We think the investments in price guided over the mid-term will not be offset by operating leverage and instead expect greater investments in improving the proposition to increase customer retention to be a priority for management," RBC said.

Analysts at Jefferies said Boohoo was on course to reach £1bn in sales by 2020, with its Pretty Little Thing brand contributing around 50 per cent to growth, and US sales accounting for 25 per cent of growth.

What Boohoo said

Mahmud Kamani and Carol Kane, joint chief executives, said: "The Black Friday period was our most successful ever and we traded well throughout the period under review.

"Our focus remains on the customer proposition: offering the best range of the latest fashion at affordable prices, coupled with great customer service."

Related articles