Saturday, February 23, 2019

Boohoo’s annual profits skyrocket 97%


Boohoo‘s profits almost doubled in the past year, with the online fashion retailer attributing it to strong growth in the UK and the US.

In the retailer‘s fiscal year ending February 28, pre-tax profits surged by 97 per cent to £30.9 million, while revenue soared 51 per cent to £294.6 million.

Boohoo’s performance continues the industry-wide trend of online retailers outperforming their bricks-and-mortar counterparts, especially in the fashion sector.

Joint chief executives Mahmud Kamani and Carol Kane said it has been “momentous year” for the company.

“The Boohoo brand has achieved outstanding revenue growth and increased profitability margins during the year,” they said.

“We continued to grow strongly in the UK, our largest market, whilst international growth exceeded our expectations, particularly in the USA.”

READ MORE: Boohoo takes £12m loan to acquire Nasty Gal

Sales in the US went up by 140 per cent at constant exchange rates, while in Europe they increased 50 per cent.

The Manchester-based online retailer‘s share price also tripled in the last month, making the business valued at more than £2 billion, according to the Mail on Sunday.

The news comes after Boohoo recently acquired US fashion site Nasty Gal out of bankruptcy for £20 million and enjoyed a 55 per cent jump in sales over the Christmas period.

The retailer also bought smaller online fashion rival Pretty Little Thing, which was founded by Kamani‘s sons, in the last year.

The chief executives added: “Both brands have huge potential and the acquisitions represent a step-change in the size, structure and operation of the group.

“We are confident that our expertise combined with the strength and following of our new complementary brands will greatly enhance the group’s future growth and profitability.”

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