- Huw Hughes |
Boohoo has raised 198 million pounds within 24 hours of launching a share placing, money the fast-fashion giant will use to finance acquisitions.
In a candid statement released Friday, the retailer said it would use the money to “take advantage of numerous opportunities that are likely to emerge in the global fashion industry over the coming months.” It added that it continues “to review a number of possible M&A opportunities and will update shareholders as required.”
The Manchester-based company has been a modern-day success story against a broader backdrop of difficult retail in the UK. Its most recent full-year report revealed a 44 percent surge in revenues at current and constant exchange to 1.235 billion pounds.
As of February 2020, the group had audited net cash of 240 million pounds.
Boohoo eyes further acquisitions
The company has made a name for itself as an acquirer of struggling brands - a strategy similar to that of Mike Ashley's Frasers Group.
In recent years, Boohoo has bought brands PrettyLittleThing, MissPap and NastyGal, while more recently last year it acquired Karen Millen and Coast in a deal worth 18.2 million pounds.
The company said that since mid-March it saw a marked decrease in its year-on-year growth rate due to Covid-19 but that has improved since April and its trading “remains robust” into May.
“The group does, however, remain cautious regarding the outlook, as a result of the uncertainty caused by the Covid-19 pandemic together with the impact of lifting lock- down restrictions and the potential influence on competitive behaviour for the remainder of the year,” the company added.
Photo credit: Boohoo Group media gallery