RE: Asos faces tough job of rebuilding relations in the City5 Sep 2019 09:42
Boohoo boosts full-year guidance as sales soar Online fashion retailer reaps benefits of consumer shift online Share on Twitter (opens new window) Share on Facebook (opens new window) Share on LinkedIn (opens new window) Share Save Jonathan Eley and Myles McCormick in London 45 MINUTES AGO Print this page Fast-fashion retailer Boohoo has grown even faster than expected this year, it reported on Thursday, pushing shares up more than 10 per cent. The group said sales were now expected to rise by between 33 and 38 per cent, compared with previous guidance of 25-30 per cent. Margins before interest, tax, depreciation and amortisation will remain at about 10 per cent. Boohoo shares opened up 11.8 per cent at 272p. The group, founded by Mahmud Kamani and Carol Kane in 2006, has been on a tear in recent months and its market value is now greater than that of Aim-traded rival Asos, which has been hit by two profit warnings. Boohoo has become a bright spot in the general retail malaise as it benefits from consumers shopping increasingly online, while many high street chains have struggled to cope with the pace of change. Even some digital pioneers are finding themselves outmanoeuvred by Boohoo, which adds about 200 new items to its website daily. Last month, the retailer acquired the online business of Karen Millen, the upmarket womenswear retailer, in a departure from its usual strategy of targeting young consumers with cheap fashions. Analysts at house broker Jefferies said consensus profit forecasts would rise by around 3-4 per cent following the statement. It brought in revenue of £856.9m in 2018, which was almost 50 per cent higher than the previous year. This latest guidance implies 2019 revenues of up to £1.18bn.
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