- Angela Gonzalez-Rodriguez |
New York – British online fashion firm Boohoo (BOO.L) reported a better-than-expected jump in profit and revenue for its year to mid-February, sending its stock soaring as much as 5 percent on the London Stock Exchange. As a result, the retailer’s market valuation rose to 2.65 billion pounds.
Industry analysts have been quick to cheer Boohoo’s results, given the steep contrast with other fashion retailers in the UK. While the likes of New Look and Marks & Spencer are closing stores and Debenhams collapsed into administration, Boohoo has been able to outperform even its longer-established online rival ASOS, highlights Reuters. It’s worth recalling that ASOS reported an 87 percent drop in first-half profit earlier this month.
Boohoo shines amongst gloomy UK's fashion retail
“As clothing players such as Topshop and New Look fail to convince young consumers to purchase, the Boohoo group has gone from strength to strength,” said GlobalData retail analyst Emily Salter in a market note.
In fact, agree market sources consulted by FashionUnited, Boohoo owes part of this resilience to its PrettyYoungThing and Nasty Gal brands. PrettyLittleThing’s revenue more than doubled to 374.4 million pounds, all set to overtake Boohoo’s namesake brand in UK market share this year. Meantime, revenue at Nasty Gal rose 96 percent to 47.9 million pounds. Boohoo’s growth was humbler: 16 percent (reaching 434.6 million pounds.)
“I am very excited to have joined the boohoo Group at this key stage of its growth, with the group’s disruptive and proven business model having delivered yet another excellent set of financial and operational results,” said John Lyttle, CEO of Boohoo. He added how he was “very excited to have joined the Boohoo Group at this key stage of its growth” and that the company was well-positioned to “disrupt, gain market share and capitalise on what is a truly global opportunity”.
In a report sent to investors and clients by Liberum Capital on Wednesday morning, Boohoo.com Plc (LON:BOO) stock Buy was reaffirmed. Among 3 analysts covering the stock, one recommends buying, one has a ‘Sell’ rating and the third one advises to hold on the shares.
Image: Boohoo’s Women S/S19 Collection. Corutesy of Boohoo plc.