Technology

Posted on April 25, 2018 by staff

Skyrocketing sales and profits at online fashion retailer

Technology

Online fashion retailer boohoo.com almost doubled its revenue in the last financial year while profits also skyrocketed.

The Manchester-headquartered company generated revenue of £579.8 million in the 12 months to February 28th, compared with £294.6m in 2016/17.

Of those sales, £374.1m were from boohoo.com, while £181.3m came from PrettyLittleThing and £24.4m from Nasty Gal, the companies it acquired at the start of 2017.

PrettyLittleThing, the fastest-growing online fashion brand, grew revenues 228 per cent.

boohoo’s overall pre-tax profit of £43.3m was an increase of 40 per cent.

Joint CEOs Mahmud Kamani and Carol Kane said in a statement: “The group made great progress during the year, integrating a new company, PrettyLittleThing, and a new brand, Nasty Gal, into the boohoo group.

“Revenue from boohoo continued to grow strongly, whilst there has been an exceptional performance from PrettyLittleThing, and Nasty Gal exceeded our estimates in its first year.

“Against a backdrop of difficult trading in the UK clothing sector, the group continued to perform well, gaining market share in the expanding online sector.”

boohoo now has 6.4m active customers, a 22 per cent increase on a year ago, while PrettyLittleThing has 3m customers, a growth of 128 per cent.

boohoo plans to construct a new £150m warehouse in the UK while PrettyLittleThing is also moving into its own warehouse.

The CEOs added: “Our international business showed higher growth rates and we are pleased with its gathering momentum.

“Our strategy will remain focused on providing the best fashion at great prices coupled with excellent customer service.

“To this end we have a plan of continuous investment in systems and technology to ensure we offer an optimal online shopping experience. International expansion will continue as we add more country-specific websites, refine our brands’ customer proposition and raise brand awareness through marketing and social media.

“Our extended distribution centre, which will have a significant element of automation to drive efficiency savings, is scheduled for operational use in early 2019.”