Boohoo.com has acquired key online fashion rival Pretty Little Thing in a deal worth £3.3 million.
Following an upgrade of its profit guidance allowance following a strong Black Friday, Boohoo will aquire 66 per cent of Pretty Little Thing, with the remaining 34 per cent staying with the company‘s management.
Revenues at Pretty Little Thing shot up by 400 per cent to £17 million last year and revenue for the first six months of this year was a promising £19 million.
Boohoo has reported that it now expects revenue growth of around 40 per cent for the financial year, up about 10 per cent from its previous guidance. It also expects its earnings margin to grow by 11-12 per cent following the acquisition.
“Pretty Little Thing was always going to be a natural fit with Boohoo. Umar and his team are to be congratulated for creating a fantastic brand, which complements Boohoo’s own,” Boohoo chairman Peter Williams said:
“We believe this is an excellent opportunity to extend the group’s overall customer appeal.”