Investor cheer boosts Boohoo share price seven per cent
Shares in online retailer Boohoo are back in fashion after it reported a 27 per cent surge in full year revenue.
Shares in the Manchester-based group jumped as much as seven per cent to 27 pence in early morning trade today. But despite the gains, they remain well below last year's initial public offering price, or 50 pence per share.
The company, which targets 18 to 24-year olds, was helped by mobile which accounted for almost 50 per cent of website visits, and it also launched new lines boohoo Petite and boohoo Fit during the period.
Boohoo said revenue rose 24 percent on a constant currency basis to £21.9m in the two months to February 28, pushing full-year up to £139.9m, or a rise of 31 percent.
"We remain absolutely focussed on execution and are increasing our marketing spend in 2015-16 to drive momentum in the business," said joint chief executives Mahmud Kamani and Carol Kane.
Today's update comes after the etailer's share shed 40 per cent in January, due to a profit warning for its full-year results, amid heavy discounting and as unseasonably warm weather kept shoppers off the high street.
The company also said it would seek to buy back shares from the ordinary market at its next investor meeting.
"The board has considered the levels of cash in the business and will be seeking authorisation to buy back up to 10 per cent of issued share capital to be approved at the next AGM," it said in a statement to the London Stock Exchange.
Share buybacks are good news for investors, because they decrease the number of shares on the open market, consequently pushing up their value.