Boohoo sets the online shopping trend to start the New Year
Boohoo.com has ended 2016 on a high and looks set to continue the form into the New Year, with the online clothing retailer reporting strong increases in revenues and raising its revenue guidance for the start of this year.
The figures
Revenues grew 55 per cent, with growth in America particularly impressive: US revenues increased by 230 per cent (or 188 per cent after sterling’s devaluation is taken into account).
European revenues rose 63 per cent, while 5.1m people shopped on its site during the year, a 31 per cent increase year on year.
Revenue growth for the first two months of 2017 is now set to be between 43 per cent and 45 per cent – up from previous guidance of 38 per cent to 42 per cent.
It has cash on its balance sheet of £69m.
Why it's interesting
Boohoo.com is at the forefront of the long list of clothing retailers aiming to take a chunk out of the high street – particularly over the Christmas period.
Boohoo updated revenue guidance four times in 2016, continuing a strong pace of growth after listing on London's Aim market in 2014. It was launched in Manchester in 2006, aimed at young women with own-brand clothing with low prices.
Its ambitious expansions – including an opportunistic successful bid for bankrupt US rival Nasty Gal – make it one to watch. Last week it completed the acquisition of a controlling stake in PrettyLittleThing, another online fashion contender, for £3.3m in cash.
Also look out for its moves into the slightly less stylish world of warehousing. It has moved to extend its warehouse in Burnley as it moves to improve its infrastructure.
What Boohoo said
Mahmud Kamani and Carol Kane, joint chief executives, said:
Trading in the four months to 31 December 2016 has been strong across all regions.
Sales momentum in the USA has continued robustly, helped by our strong customer proposition across the Black Friday weekend.
In short
The dedicated follower of fashion is setting its own upward trend at the start of the New Year.