Boohoo said a combination of low prices and strong customer service was helping it both to grow sales fast and to play a leading role in fashion ecommerce.
The fast fashion pureplay, a Top250 retailer in IRUK Top500 research, today said in a trading update that it had grown group revenue to £183.6m in the three months to May 31 – 53% more than the same time last year. In the UK, sales of £110.7m were 49% up on last time. Still faster growth came in the rest of Europe (+82% to £22.3m) and the USA (+75% to £31.4m). Overall, international sales grew by 60%.
Sales were strong at the core Boohoo brand, where sales of £96.2m were 12% up on last year’s first quarter figures, but stronger still at PrettyLittleThing (£79.2m, +158%), and Nasty Gal (37.2m, +140%). Profit margins were above 50% across the business.
The retailer said that trading in the first quarter of its financial year was strong and in line with expectations.
Joint chief executives Mahmud Kamani and Carol Kane said a multibrand strategy was working for it around the world, and that it was confident of continuing its strong first quarter performance through the rest of the year. “Significant market share gains have been achieved in all of our key focus markets, with our compelling combination of the latest fashion at incredible prices, backed by great customer service resonating strong with our customers,” they said. “The scale of group revenue is aligning with our ambition to become one of the dominant global retailers and our focus on profitability continues to deliver industry-leading margins.”
The retail group is investing in distribution infrastructure that can support £3bn of net sales globally. The PrettyLittleThing brand is moving to its own warehouse, while its primary distribution centre in Burnley is being automated and extended.
Image courtesy of Boohoo