Boohoo.com today reported 40% growth in turnover and pre-tax profits up by 129% and said it would continue to invest in marketing and the customer experience.
The fast fashion retailer, a Top100 company in IRUK Top500 research, reported revenue of £127m in the six months to August 31, 40% up on the same time last year. Pre-tax profits of £14.4m were 129% ahead. Some 72% of website sessions took place over mobile devices.
UK sales grew by a robust 38%, while sales in the rest of Europe were 41% ahead, and those in the US 93% ahead. International, said Boohoo.com, now represents 36% of total revenue.
Joint chief executives Mahmud Kamani and Carol Kane said growth had been “robust” across all its markets as new customers buy.
“Our inclusive brand, unbeatable choice, together with our incredible prices and fantastic service, continue to inspire and appeal to young customers around the world,” he said. “Through our constant focus on what matters to our customers, together with our investment in technology and operational improvements, we will continue to deliver profitable growth.”
The two said they would continue to invest in marketing campaigns. Recent work here includes more activity on social media, where, for example, its Instagram following now numbers 3.8m, and a focus on the efficiency of acquisition marketing spend, using “more advanced analytical tools and techniques”. Its ‘Style Squads’ include more than 60 bloggers and influencers across key markets.
Resources will also go into the customer proposition – in order to improve customer lifetime value – and into IT systems and ecommerce platforms. In the second half of the year, boohoo.com has introduced boohoo Premier, offering unlimited next-day delivery for an annual fee. It has also introduced live chat on the website.
Android and iPhone apps were introduced in the UK, US and Australia in the spring and so far have been downloaded 1.4m times. Smartphones and tablet computers now account for 72% of online sessions.
In the second half the retailer plans to invest in new IT platforms, and will also expand the number of markets that it sells into, personalising by territory and device to improve the customer experience.
The retailer has an option to buy PrettyLittleThing before March 2017.
As a result of ongoing investment, said Kamani and Kane, “EBITDA margin for the full year is expected to be around 11%.”
A range of clothing for children aged between five and 12 will be introduced in the second half of the year, following the launch of the boohooMAN.com website.
