Boohoo share price up as profit increase bucks retail downturn
Boohoo has nothing to cry about this morning, reporting strong half-year results – its first since going public – and sending shares up five per cent in early trading.
Pre-tax profits were up 23 per cent to £4.5m, as revenue was up 31 per cent to £67m in the six months to 30 September in line with expectation.
Boohoo grew the number of active customers on its website to 2.7m, crediting its mobile website and new Spanish, German and Italian websites with spurring growth, in addition to increased warehouse capacity.
UK and European sales were up 17 and 43 per cent respectively, while sales elsewhere fell slightly, down 11 per cent.
The company floated in March with a valuation of £560m, but shareholders have suffered a declining share price despite positive results as tough trading conditions for retailers continues to impact the overall sector.
Joint chiefs Mahmud Kamani and Carol Kane said:
"Our focus remains on further expanding our international footprint while growing sales in the UK.
"During the current quarter we have managed our marketing spend and growth during the implementation of the warehouse management system and the launch of the fully responsive mobile website.
"Following the successful execution of these key initiatives, our marketing spend has again increased in line with our targets and we continue to trade in line with market expectations for the full year."