Boohoo beat revenue expectations despite other retailers’ lockdown pain today as it confirmed a cut-price purchase of Oasis and Warehouse’s online divisions.
The digital fashion retailer has thrived in lockdown, seeing revenue jump 45 per cent to £367.8m in the three months to May.
And it also confirmed a £5.25m purchase of the online businesses of Oasis and Warehouse from Hilco Capital. Those brands fell into administration on 30 April, with 1,803 redundancies.
Boohoo’s share price surged 9.6 per cent higher to 426.6p in early trading as investors clambered on board.
Boohoo’s revenue rocketed in every region, up 30 per cent year on year to £183m in the UK for the three months to the end of May. Its US division jumped from £51.3m this time last year to £92m and Europe leapt 66 per cent to £63.4m.
The fashion brand said it will integrate Oasis and Warehouse into its own platform to share infrastructure and a supply chain.
Despite the physical store struggles that led to their administration, last year Oasis and Warehouse booked a collective £46.8m in direct online revenue, Boohoo said.
The sum the firm paid for the two brands – once owned by Kaupthing Bank along with Karen Millen – is a fraction of the £18m it paid for Karen Millen in 2019.
And Boohoo said it will use its £197.7m May equity raise to explore further mergers and acquisitions.
John Lyttle, Boohoo CEO, said: “During unprecedented and challenging times, the group has delivered a very strong trading and operational performance. I am proud of how our colleagues and business partners from around the world have responded to ensure that we can safely bring to our customers the latest fashions, great value, fantastic prices and best in class service.
“Whilst there is a period of uncertainty within the markets in which we operate, the group is well-positioned to continue making progress towards leading the fashion e-commerce market globally.”
Boohoo guided to revenue climbing 25 per cent higher for the financial year ending in February 2021, with profit set to beat market expectations. It also committed to spending £60m to £80m to invest in future growth.