Boohoo raises sales guidance
Written by Hannah McGrath
Boohoo has raised its sales guidance for the year following strong growth in the first half of its financial year.
The fast fashion retailer, which last month acquired the online operations of Karen Millen and Coast, said in a trading statement that it expects full year sales growth to come in between 33 and 38 per cent – against previous guidance of 25 to 30 per cent.
Earnings before tax are due to continue at around 10 per cent.
The announcement comes ahead of the publication of the group’s first half results on 25 September.
The trading update issued by the group said: “Performance has been ahead of expectations with strong revenue growth driving operating leverage across key brands. Consequently, the board now anticipates that results for the current financial year will be ahead of previous guidance.”
In June, Boohoo reported revenue for the year to 31 May of £254.3 million, up 39 per cent year-on-year. UK revenue grew by 27 per cent, while internationally it was up by 56 per cent.
The group also owns fast fashion brands PrettyLittleThing, Nasty Gal and Miss Pap, targeted at a young Generation Z shoppers aged 15 to 24.
The group’s eponymous brand reported revenue of £123.5 million, up 27 per cent year-on-year, while PrettyLittleThing’s first quarter revenue was up 42 per cent to £112.1 million year-on-year. Nasty Gal’s revenue rose by 153 per cent to £18.2 million.
Commenting on the announcement, Wunderman Thompson Commerce's global head of consultancy and innovation Hugh Fletcher said that Boohoo's focus on online-only retail, alongside its strategy to capitalise on current fashion trends, have been at the centre of its success story.
"But one of Boohoo’s biggest strengths is its ability to hone into the influencer market - the power of influencers is something that is only growing, in fact we found that 49 per cent of 16 to 24 year-olds are inspired by content they see on social media.
“While Boohoo’s online retailing has been a resounding success, the argument can be made that it is missing out on the huge potential provided by physical retailing," he continued. "Despite being digital-natives, younger shoppers remain keen for stores to have a physical presence, with 48 per cent of consumers preferring to shop with a brand that has a bricks and mortar store."