Boohoo upgrades forecast for the second time this year
Online fashion retailer Boohoo upgraded its forecasts again today after announcing bumper sales growth and profits for the six months to the end of August.
Boohoo upgraded its full-year sales guidance for the second time in two months. At the beginning of August, the online retailer upped its expected sales growth to between 28 per cent and 33 per cent. Now the company anticipates growth for the full year to be between 30 per cent and 35 per cent.
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Retail analyst Nick Bubb said the upgrade "still looks conservative, notwithstanding the importance of Christmas trading and tougher comparables from the second half".
This morning the company also announced a sales growth of 40 per cent for the six months ending 31 August, and a jump in pre-tax profits of 129 per cent. UK sales increased 38 per cent.
Bubb said:
UK sales growth of 38 per cent is particularly impressive, given how difficult the UK clothing market has been, but international sales is now 36 per cent of total sales.
Boohoo also said it had an option to acquire competitor Pretty Little Thing before March next year.
"Management is evaluating all aspects of a potential acquisition, the related management incentive and how the business will be best integrated and managed as part of the Boohoo group," the company said.
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Both companies target smartphone-savvy millennials shopping online, and Boohoo said today that it is continuing to invest in technology.
Joint CEOs Mahmud Kamani and Carol Kane said in a statement: "Through our constant focus on what matters to our customers, together with our investment in technology and operational improvements, we will continue to deliver profitable growth.
"Following the success in the first half of the year we will continue to look for opportunities to invest in marketing campaigns and our customer proposition to drive future sales growth and improve customer lifetime value."