The boss of etailer Boohoo insisted it has the flexibility to navigate the currency headwinds that have stalled rival Asos’ growth.
Despite soaring full year profits and turnover, Boohoo’s sales outside of Europe dropped 20% in the three months to March 31 just a week after Asos issued a profit warning because of currency exchange fluctuations.
However, Boohoo joint chief executive Carol Kane insisted currency movements were not a threat to its growth.
“We have the ability to alter price points. We’re not tied into one currency. We’ve always priced in markets sensitively,” she said.
Joint chief executive Mahmud Kamani added: “It’s just another challenge. We’re not in control of FX markets, you’ve got to ride it out and adapt. Our business allows us to move swiftly.”
Kamani said that Boohoo’s big growth opportunity would come from overseas expansion. The etailer plans to open an office in the US to help drive growth in the country, where it has operated a country specific website since early last year.
The etailer is also to push into more European countries over the next 12 months following its recent Spanish website launch.
Boohoo is also to add a petite range to its offer following on from its plus size launch earlier this year. This will add to its range that already consists of evening wear, a more premium Boutique offer and menswear as well as its core womenswear.
Kane said it would be adding maternitywear to its offer over the next 24 months.
Boohoo’s pre-tax profit rocketed from £3.2m to £10.7m in its year to February and sales soared 63% to £109.8m. In the three months to May 31 sales grew 24% to £30.7m.
Boohoo full-year profits rocket but currency headwinds hit overseas sales
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Boohoo boss insists it can navigate currency headwinds that are hurting Asos