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Boohoo.com H1 revenues jump 40 percent

By Prachi Singh

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Business

In its trading update for the first six months, Boohoo.com said that revenues grew across all geographic regions. In the UK, its largest market, revenue growth was 38 percent, while in Europe, growth was 41 percent (CER 41 percent). The USA continued to grow very strongly at 93 percent (CER 81 percent) and rest of the world growth was 17 percent (CER 27 percent).

Commenting on the trading, Mahmud Kamani and Carol Kane, joint CEOs, said, "We are pleased to report a strong performance in the first half of the year, with robust growth across all regions and continued momentum in new customer growth. As a result of our continued momentum in the UK and encouraging growth in selected overseas markets, we now expect revenue growth for the full year of between 30 percent and 35 percent, reflecting tougher second half comparatives. Consequently EBITDA margin for the full year is expected to be around 11 percent."

First half trading highlights

The company said, while currency exchange movements since the EU referendum have not significantly affected results due to foreign exchange hedges placed several months earlier in accordance with its hedging programme, with an element of many product prices being dollar‐based, it would gauge the longer term effect of continued sterling weakness on the supply chain.

Gross margin for the period was 55.3 percent reducing by 480bps. Retail gross margin was 57 percent. Adjusted EBITDA was 16.5 million pounds (21.4 million dollars), an increase of 117 percent on the prior year, and profit before tax was 14.4 million pounds (18.7 million dollars), an increase of 129 percent.

Core womenswear ranges of dresses, tops, jackets and footwear continued to perform strongly, whilst other products from the expanded range generated robust revenue growth. Active customers in the 12 months to August 31, 2016, rose to 4.5 million, an increase of 28 percent on the same period a year ago. The number of website sessions grew strongly by 32 percent on the previous 12 months to 241 million sessions.

Sara Murray joins the board

Sara Murray as a non‐executive director in April and Mark Newton‐Jones stepped down from the board in July. The senior management team remained unchanged during the period, following a number of senior appointments last year.

The company said that it has an option to acquire the business of " Pretty Little Thing” before March 2017 and management is evaluating all aspects of a potential acquisition.

Picture:Boohoo.com

BooHoo.com