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Boohoo revenues soar a trendy 35%

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Revenue and pre-tax profit at British fashion e-tailer Boohoo.com jumped 35% in its first half, reaching £90.8m: a 4% increase on the same period last year. Sales growth was driven by “acquiring new customers” through investments in “price, promotions and marketing spend”. 

The online fashion pureplay has come a long way since Christmas 2014, when heavy discounting and delivery problems forced the FTSE 250-listed company to issue a profit warning. Subsequently, shares fell 40% in January.   

Boohoo, which designs, sources, markets and sells own-brand clothing, shoes and accessories online to a core market of 16-24 year-olds in Britain and globally, said it now has 3.5m active customers, up 32%  

year-on-year after a marketing push, reduction in prices and initiatives such as a student ambassador program in universities across the country and a pop-up store in France. 

The retailer generates nearly two thirds of its revenue in the UK, but is eyeing opportunities overseas. 

"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," Mahmud Kamani and Carol Kane, joint CEOs, said in a statement released today.

"The autumn/ winter marketing campaign #WeAreNow is supporting a good start to the second half. We are also pleased with the response to our new app and responsive websites and will continue to invest in building customer value and market reach in the second half of the year." 

Boohoo is also planning to increase the number of collection and return points from third party stores which could be its answer to addressing the lack of physical stores. 

Published on Tuesday 29 September by Veebs Sabharwal

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