Boohoo has upped its full-year sales guidance after hailing a spike in sales and profits during its first half.
The fast-growing fashion etailer posted a 41% uplift in pre-tax profit to £20.3m during the six months ending August 31.
Adjusted EBITDA surged at an even steeper rate of 68% to £27.8m, while operating profit rose 42% to £20m during the period.
Boohoo said its bottom line was driven up by rocketing revenues, which more than doubled to £262.9m.
The majority of sales continued to come through the Boohoo brand, but revenues at PrettyLittleThing and Nasty Gal – both of which were acquired earlier this year – also improved to help drive up the group’s top line.
PrettyLittleThing’s revenues almost quadrupled to £72.7m year-on-year, while Boohoo said sales at Nasty Gal had advanced month-on-month since its acquisition in March 2017 and hit £8.4m by the end of August.
Despite the impressive sales gains, gross margin dropped 200 bps to 53.3% across the group following “planned investments in the customer proposition”.
Boohoo said full-year sales are now expected to rise around 80%, up from its previous guidance of 60%.
Revenue growth from the Boohoo brand is forecast to be “at the upper end of previous guidance” at circa 30%.
New brands boost
Sales from PrettyLittleThing are predicted to surge 150% above the £55m it achieved in the 12 months to February 28 – doubling its previous guidance of a 75% increase – with the remaining growth coming from the Nasty Gal brand.
Boohoo said as a result of “significantly better-than-expected” growth within PrettyLittleThing and investments in price, promotions and marketing, adjusted EBITDA margins for the full-year would now be between 9% and 10%.
“The integration of the two new brands has been successful, adding diversity to our business whilst enabling us to draw upon our strengths”
Mahmud Kamani and Carol Kane
The etailer said active customer numbers had increased 29% to 5.8 million over the last 12 months, while the number of website sessions in its first half advanced 20% to 158 million as it continues to attract new shoppers.
Boohoo gained particular traction in the US, where sales rocketed 160% year-on-year to £39.59m.
Revenues doubled to £163.38m in its core UK market and were up 89% across the rest of Europe.
Boohoo’s joint chief executives Mahmud Kamani and Carol Kane said: “Boohoo’s revenue has continued to grow across all geographies, with international growth being strongest as we continue to increase our market share overseas, and the newly acquired PrettyLittleThing brand has exceeded our growth expectations.
“BoohooMan has also performed very well, with high growth rates in the UK and overseas. Nasty Gal was rebuilt by us from virtually a zero base after acquisition in March this year and it is growing well month-on-month.
“The integration of the two new brands has been successful, adding diversity to our business whilst enabling us to draw upon our strengths in marketing, sourcing, operations and customer service to deliver profitable results and greatly increasing the group’s potential.”