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Monday 23 September 2019

Boohoo raises full-year forecasts after summer sales soar

The fast-fashion business said revenue for the year is now expected to jump between 33% and 38%, ahead of previous expectations.

Online fashion retailer Boohoo said its sales for the year will be higher than previously expected after they soared during the summer (Boohoo/PA)
Online fashion retailer Boohoo said its sales for the year will be higher than previously expected after they soared during the summer (Boohoo/PA)

By Henry Saker-Clark, PA City Reporter

Online fashion retailer Boohoo said its sales for the year will be higher than previously expected after they soared during the summer.

The fast-fashion business said revenue for the year is now expected to jump between 33% and 38%, after previously forecasting growth of between 25% and 30%.

Boohoo said earnings for the year are expected to remain in line with expectations, as it drives investment into brands it acquired during the year.

The retailer, founded in Manchester in 2006 by Mahmud Kamani and Carol Kane, has seen shares surge recently, with its market value recently overtaking rival Asos.

Its growth comes amid a malaise across the retail sector driven by sliding footfall as customers continue to shift online.

Analysts at Jefferies hailed the “stellar performance” by the retailer as it benefited from warm summer weather.

The company said its strong revenue growth will drive operating leverage across its key brands, including three businesses acquired over the past year.

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Alongside Karen Millen, Boohoo also acquired the Coast brand (PA)

Last month, the retailer departed from its previous acquisition model of buying brands targeting young consumers to snap up upmarket womenswear retailer Karen Millen.

Alongside Karen Millen, Boohoo also acquired the Coast brand, after also purchasing women’s fashion business MissPap.

In the first quarter of 2019, Boohoo said first quarter group revenues surged by 39% after strong growth across all its brands.

Recently hired chief executive John Lyttle helped guide the company to a better-than-expected £254.3 million revenue in the “strong” period to May.

Boohoo said further guidance will be given when the group announces its interim results on September 25.

Shares in the company jumped 13.4% to 276p in early trading on Thursday.

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