Christmas falls flat for online retailer Boohoo.com
Shares in Boohoo.com fell by more than 40pc after the fashion website said its Christmas marketing push failed to boost sales by as much as hoped.
The Manchester-based business, which targets the 16 to 24 age range, said despite sales rising 25pc to £50.7m in the four months to December 7 it was hindered by high street discounting and warm autumn weather. It said full-year results would now miss market expectations, with second half sales growth at around 25pc and full-year margins at 10pc. The City had expected full-year sales growth at roughly twice the firm's new forecasts.
The company, led by joint chief executives Mahmud Kamani and Carol Kane, said: "Whilst the period proved a challenging trading environment, we have still grown the business by 25pc, albeit short of our previous expectations."
The business said improvements to its warehouse and its website last year, as well as a marketing push before Christmas, produced "growth that was less than anticipated."
A record trading week at the end of November was boosted by Black Friday, with demand almost two-and-a-half times greater than its previous busiest day.
Broker Peel Hunt expected Boohoo.com's full-year sales to be around £14m, £15m less than it previously forecast. It said the firm's pre-tax profit will come in at £12.5m.