Boohoo’s share price climbed this morning, as the UK online retailer reported a jump in both revenue and profits.
The fashion etailer's revenue soared by 35 per cent in the first half of 2015, to land at £90.8m. Pre-tax profit was up to £6.3m, a rise of 39 per cent.
The FTSE 250-listed company said it was now expecting a full year revenue growth of between 30 to 35 per cent.
Boohoo's share price climbed 6.8 per cent on the news, however shares are still down in the year to date, after warm weather and delivery struggles over Christmas resulted in the company’s shares tumbling by 40 per cent.
Why it’s interesting
With both revenue growth and pre-tax profits accelerating, Boohoo has clearly shown it’s back on track after last Christmas’s woes, when a warm autumn forced it to issue a profit warning sending its share price down over 40 per cent.
UK sales are up 30 per cent, but figures in the rest of the world show the company’s international expansion on track, as revenue jumped 65 per cent.
However it will have to go some way to recover the losses to its share price since its IPO in March 2014, when it opened at 85p – 70 per cent higher than the 50p float price.
What they said
Carol Kane and Mahmud Kamani, joint chief executives, said:
We are pleased to report a successful first half, with strong revenue growth driven by acquiring new customers through our investments in price, promotions and marketing spend. We continue to invest in our brand internationally and our strategy to focus on key markets where we see the greatest growth potential remains unchanged.
Boohoo has released stylish earnings figures which show the company is back in fashion.