Tuesday 14 January 2020 10:06 am

Boohoo hikes guidance after 'record' quarter

Boohoo raised its full-year guidance this morning as it reported record trading during the final quarter of last year.

The online fashion retailer’s shares jumped more than five per cent after it announced group revenue in the four months to 31 December was £473.7m, an increase of 44 per cent compared to the same period last year. 

Read more: Boohoo co-founders sell off £143m of shares

The company said revenue in the financial year to 29 February is expected to be 40 per cent to 42 per cent, ahead of its previous estimate of 33 per cent to 39 per cent.

Group adjusted earnings before interest, tax, depreciation and amortisation (Ebitda) margin is expected to be between 10 per cent to 10.2 per cent. 

This morning the e-commerce platform said revenue in the US was up 57 per cent to £110.6m during the quarter.

Boohoo’s revenue was up 42 per cent during the quarter, Pretty Little Thing reported an increase of 32 per cent and Nasty Gal saw revenue soar 102 per cent.

The company also completed the integration of new acquisitions Miss Pap, Karen Millen and Coast into the Boohoo platform. 

In a note to investors Shore Capital Market analysts said: “In our view, this is another excellent trading quarter for the company. All the brands continue to develop at pace. The Group’s marketing campaigns continue to clearly resonate with young customers as they fully utilise social media and other mediums.

“The automated warehouses in Burnley and Sheffield will, over time, to us drive operating efficiencies from the platform that can be reinvested in the customer proposition.”

Richard Lim, chief executive of Retail Economics, added: “These are exceptional results from the retailer who have sustained remarkable levels of sales growth supported by their superior digital and marketing strategy. ”

“Online ‘fast fashion play’ Boohoo shows no signs of slowing down. At a time when many traditional clothing retailers are struggling, the company is continuing to prove the benefits of its purely online operation, emerging as one of the sector winners from the crucial festive period,” Russ Mould, investment director at AJ Bell, said.

“Impressively, growth is actually accelerating from the autumn according to a four-month update encompassing Christmas and Black Friday trading. Against this backdrop a very modest retreat in margins is likely to be forgiven by the market.”

Boohoo chief executive John Lyttle said: “I am delighted to report the group has enjoyed record trading in the last four months of 2019.

Read more: Watchdog censures Boohoo and Missguided over sexual adverts

“All of our brands have performed exceptionally well and delivered strong market share gains. 

“We have continued to see operating leverage in our more established brands, and will continue to invest into them and our newly-acquired brands. 

“The newly-acquired brands, Miss Pap, Karen Millen and Coast, are showing great promise and open different target markets for the group, in line with our strategy to build our multi-brand platform.”