Online fashion retailer Boohoo has once again upped its full-year revenue guidance on the back of strong growth across all brands and regions in the four months to December.
In a trading update this morning (15 January), Boohoo said group revenue soared 44% to GBP328.2m (US$421.3m) in the period ended 31 December, from GBP228.2m a year earlier. Growth was seen across all geographies, while gross margin was up 170 basis points to 54.2%.
Sales at the retailer’s namesake brand were up 15% on prior year comparative to GBP163.5m, with year-to-date revenue totalling GBP372.5m, also up 15%.
At PrettyLittleThing, revenue reached GBP144.2m, up 95% on the prior year. Year-to-date revenue amounted to GBP312.8m, up 114%. Meanwhile, revenue at Nasty Gal surged 74% to GBP20.6m, with year-to-date revenue totalling GBP38.3m, up 89%.
Group revenue growth for the financial year to 28 February 2019 is now expected to be 43% to 45%, ahead of previous guidance of 38% to 43%. Boohoo also expects group adjusted EBITDA margins to be between 9.25% and 9.75%, narrowing the range from the 9% to 10% as previously guided. All other guidance remains unchanged.
Joint CEOs Mahmud Kamani and Carol Kane said: “We remain firmly focused on continuing to provide our customers with great fashion at unbeatable value. The global growth opportunity is significant and we will be addressing it in a controlled way – investing in our proposition, operations and infrastructure to capitalise on the opportunity.”
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Describing Boohoo as the ”golden child of UK retail,” Emily Salter, retail analyst at GlobalData, notes growth is being driven by PrettyLittleThing’s 95% increase in revenue, compared to the group’s namesake brand’s comparatively modest 15% growth as the brand matures.
“The Boohoo group appears to have been immune to the tough retail conditions faced by UK retailers over the past few months, especially in November, with the group being quick to reassure investors that trading remained strong and in line with market expectations after key competitor ASOS issued a surprising full-year profit warning.”
She adds: “Young consumers’ unwavering appetite for fast fashion has enabled the Boohoo group to thrive and it is able to capitalise upon demand, especially by having three brands with strong individual identities.
“2019 is highly likely to be another successful year for the group, as it continues to expand internationally as UK growth slows due to the relative maturity of the brands. The group therefore needs to invest in the proposition, operations and infrastructure in key global markets to allow for further growth, especially the US, where it experienced a 77.7% increase in revenue during the period.”