Boohoo fashions sales rise that its struggling retail rivals would die for

Boohoo fashions sales rise that its struggling retail rivals ‘would die for’ but the Love Island favourite can’t avoid a few tears as its shares slip

  • Boohoo’s first quarter group revenues surged by 39 per cent to £253.3m
  • Analyst says it’s ‘a set of results any other fashion retailer would die for’ 
  • But shares still slipped 3 per cent to £2.24 in early trading on Wednesday

Sales boom: Boohoo saw sales rise 39 per cent in its first quarter

Sales boom: Boohoo saw sales rise 39 per cent in its first quarter 

Boohoo shares slipped into the red despite the online fashion firm posting the sort of sales performance that many of its struggling retail rivals could only dream of. 

The Manchester-based Love Island favourite fashioned a better-than-expected 39 per cent rise in sales in the past three months – throwing the troubles of its competitors Ted Baker, Quiz and Arcadia into sharp relief. 

Boohoo’s UK sales jumped 27 per cent and international sales rocketed 56 per cent, thanks in part to its social media campaigns and better stock availability. 

Its core Boohoo brand grew by 27 per cent, while smaller brand Nasty Gal really took off with a 153 per cent increase. 

Sales at PrettyLittleThing – up 42 per cent – narrowly missed high City expectations however, which dragged on the firm’s share price in early trading on Wednesday. 

Retail experts at Liberum said: ‘Given the strong sales performance across all the brands, it would be very harsh for the modest ‘miss’ to consensus for PrettyLittleThing to weigh on the shares’.

The stock dipped 3 per cent to £2.24, however, perhaps also stemming from a slight dip in the gross margin.

New boss John Lyttle, who joined from Primark in March, said: ‘The group has made a strong start to the year as we continue to disrupt and capture market share in the UK and internationally across all our brands.’ 

The company added that, because of its ‘strong’ first quarter, it was on track to hit its target of 15-30 per cent growth over the full year.

Boohoo was, until recently, run by co-founders Mahmud Kamani and Carol Kane (above)

Boohoo was, until recently, run by co-founders Mahmud Kamani and Carol Kane (above)

SpreadEx analyst Connor Campbell said it was ‘a set of results any other fashion retailer would die for’. 

Life isn’t all rosy for Boohoo, however, as it is facing a £118.5million lawsuit from IT contractor Richard Womack, who claims to be the firm’s third founder.

Womack alleges that he begun working with co-founder Mahmud Kamani in 1998 and was promised a 10 per cent share of Boohoo in February 2006.

At the end of its last full year, the company posted a 38 per cent rise in profits to £59.9million.   

Boohoo, which started life in Manchester in 2006, now has more than 11 million customers worldwide.  

 

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Markets | Mail Online

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