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Britain's Boohoo bucks weak festive market with 44% revenue rise

Boohoo, which sells own-brand clothing, shoes, accessories and beauty products, said on Tuesday total group revenue rose 44% to 473.7 million pounds ($614.6 million) in the four months to Dec. 31.

Article originally published by Reuters. Hargreaves Lansdown is not responsible for its content or accuracy and may not share the author's views. News and research are not personal recommendations to deal. All investments can fall in value so you could get back less than you invest.

Britain's Boohoo reported robust trading in its Christmas trading period and upgraded its full-year guidance, marking the online fashion retailer as a festive winner that bucked a weak overall market.

Boohoo, which sells own-brand clothing, shoes, accessories and beauty products, said on Tuesday total group revenue rose 44% to 473.7 million pounds ($614.6 million) in the four months to Dec. 31. That was ahead of analysts' expectations and compares to first half growth of 43%.

Founded 15 years ago in Manchester, northern England, Boohoo has expanded rapidly, listing its shares in 2014. It bought the PrettyLittleThing and Nasty Gal brands in 2017 and MissPap, Karen Millen and Coast in 2019.

The firm is tapping-in to a generation of younger consumers who shop on their mobile phones and want cheap clothing, delivered quickly. Boohoo has also utilised high profile celebrity collaborations promoted on social media, such as with model and actress Cara Delevingne and pop group Little Mix.

Sales of the Boohoo brand rose 42%, with PrettyLittleThing up 32% and Nasty Gal up 102%.

Boohoo Group plc

Sell: 314.10 | Buy: 314.60 positive 3.20 (1.03%)
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The group is now forecasting full year 2019-20 revenue growth of 40-42%, up from previous guidance of 33-38%, and a core profit margin (adjusted EBITDA margin) of 10.0-10.2%, versus previous guidance of "around 10%".

Shares in AIM-listed Boohoo, up 67% over the last year, closed Monday at 318 pence, valuing the business at 3.7 billion pounds. ($1 = 0.7707 pounds) (Reporting by James Davey, Editing by Paul Sandle)


Copyright (2020) Thomson Reuters. This article was from Reuters and was legally licensed through the NewsCred publisher network. Please direct all licensing questions to legal@newscred.com.

Article originally published by Reuters. Hargreaves Lansdown is not responsible for its content or accuracy and may not share the author's views. News and research are not personal recommendations to deal. All investments can fall in value so you could get back less than you invest.

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