Sales accelerate at Boohoo, e-tailer raises guidance

By

Sandra Halliday

Published
Feb 28, 2017

Fast-growing UK fashion e-tailer Boohoo.com seems to be going from strength to strength at the moment and said Tuesday that it has seen a strong performance since its trading update on January 10.

As a result, it now expects revenue growth for the year to February 28 to be around 50%, ahead of the previously guided range of 46% to 48%.

Boohoo said it continues to benefit from improved operating leverage in the business and now expects to deliver an adjusted Ebitda margin at the top end of the previously guided range of 11% to 12%. It said this guidance relates only to Boohoo and the recently-acquired business prettylittlething.com.

It does not include Nasty Gal. The company’s $20m bid for the assets and intellectual property of the failed US fashion brand got bankruptcy court approval earlier this month and the takeover is due to complete today (Tuesday).

Boohoo has not said much about just what its plans for that brand are although it has already started closing stores, an unsurprising move given that Boohoo’s strength lies online. We could hear more when it issues its full-year results towards the end of April.