Online fashion retailer www.boohoo.com is one of the UK’s leading online fashion retailers; it designs, sources, markets and sells its own branded clothing, shoes and accessories. It is a well established site, predominantly aimed at lifestyle-driven individuals between the ages of 16-24.
The online retailer announced figures for the first half of the financial year, increasing its revenues to £67 million, up 31 per cent on the same time last year. During this period it launched a number of local language websites in several European countries, including Germany.
It said improvements in growth were seen across all regions in the second quarter, with UK sales and the rest of Europe up 50 per cent and the rest of the world up 8 per cent. The company said in a trading update that its performance was in line with expectations, and analysts expect Boohoo to deliver 45 per cent top line growth for the full year as the brand continues to expand internationally.
The Manchester based company was founded in 2006 and it has grown rapidly, with over 2.3 million active users and approximately 140,000 new customers registering per month. The group is a well established brand in the UK, Ireland, and Australia, but also sells its products to over 100 countries. It has developed a reputation for fashion conscious women and men and offers affordable on-trend fashions with a huge variety of products.
“Boohoo.com continues to do the simple things well and in the volatile online retail arena, that is to be welcomed,” said Jefferies, analyst David Reynolds, in a research note. Similarly to ASOS, the retailer has said that currency movements are taking its toll on countries such as Australia.
Several analysts are wondering whether the online fashion start-up is stealing market share from its larger rival ASOS. This is due to the fact that Boohoo’s UK sales are flowing while ASOS are being forced to discount heavily in order to drive additional sales growth.
Boohoo’s company stock was trading 8.66 per cent higher at 44.6p per share shortly after the market opened. The company will announce its interim results on 14th October. It is clear that the fashion online retailer is doing well and remains popular among women especially.
Boohoo’s ambition and growth prospects and underpinned by forecast growth in both domestic and international online fashion retail markets. Co-founders Mahmud Kamani and Carol Kane say that the company continues to trade in line with expectations for the full year to February.