Revenue at Boohoo.com, which rivals e-tailers Missguided and Asos, jumped 45% in the fourth quarter. This beat bullish predictions of 31% growth and nearly doubling the previous year’s 25% increase.
The bumper results highlight a turnaround from the profit warning issued by the e-tailer after Christmas ’14, where the fashion brand was hit by unseasonably warm weather, heavy industry discounting and delivery issues.
“Trading in the four months to 31 December 2015 has been very encouraging across all regions, with overall revenue growth of 45%,” commented joint CEOs Mahmud Kamani and Carol Kane. “We have continued to optimise the mix of promotional and marketing spend to drive strong retail growth, reducing the proportion of marketing expenditure.
Our investments in the customer proposition have resulted in higher conversation rates, increased order frequency and lower customer acquisition costs. Operational successes include the new warehouse extension entering into full service, giving us the capacity required for business expansion, and the new UK app, which has improved the overall shopping experience.”