Boohoo upgrades annual sales guidance after strong first half

Boohoo increased its guidance for annual revenue growth as the online fashion retailer reported first-half profit up by more than a fifth.

Pre-tax profit for the six months to the end of August rose 22% to £24.7m as revenue increased 50% to £395.3m.

Boohoo, which specialises in cheap fashion, predicted revenue would rise by between 38% and 43% in the year to the end of February – up from earlier guidance of 35% to 40%.

Most of the AIM-traded company’s growth came from its PrettyLittleThing women's fashion business where revenue increased 132% to £168.6m. At the main Boohoo division revenue rose 15% to £209m.

UK revenue rose 43% to £234.1m and growth was faster in the rest of Europe, up 84% to £51.2m and the US, up 72% to £68.1m.

PrettyLittleThing moved its warehouse to a bigger site in Sheffield in July and August and the relocation went smoothly, Boohoo said.

Boohoo’s joint chief executives, Mahmud Kamani and Carol Kane, said: "Our group results for the first half year show yet another strong performance, delivering record sales and profits. All of our brands performed extremely well across all territories as we continue to gain market share.

“We achieved market-leading growth in all markets, with rest of Europe and the USA being particularly pleasing. Growth in the UK, our largest market, remains very strong.”

Boohoo’s shares rose 7.5% to 205.6p at 08:22 BST.

Kamani and Kane will step back from leading Boohoo in March 2019, handing over to John Lyttle, chief operating officer of Associated British Foods’ Primark clothing business. The company has agreed to pay Lyttle £50m in shares if the company’s value increases by 180% over five years.

Boohoo said David Forbes, its senior non-executive director, would stand down on 26 October. The company is looking for a replacement director and existing board member Sara Forbes will take over as the senior non-executive.