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Published
Jan 12, 2016
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Boohoo posts 45% revenue increase in four months to December 31

Published
Jan 12, 2016

Boohoo.com had a successful end of 2015, with sales in the four months to December 31 up 45% to £73m.

Photo: Boohoo


UK sales rose 45% to £49.7m and European sales were up 33% to £8.5m. Sales for the rest of the world also increased, rising 52% to £15m. However, the company's retail gross margin was 57%, down 290bps year-on-year. Boohoo said this was due to "planned investments in price and customer proposition."

The company now has 3.9m active customers, a 33% increase on last year.

Mahmud Kamani and Carol Kane, joint CEOs, commented:"Trading in the four months to 31 December 2015 has been very encouraging across all regions, with overall revenue growth of 45% (49% CER). We have continued to optimise the mix of promotional and marketing spend to drive strong retail growth, reducing the proportion of marketing expenditure, offsetting the 290bps decline in retail gross margin, which includes the adverse impact of exchange rate movements. Gross margin has also been impacted by 130bps due to the growth in third party sales."

"Our investments in the customer proposition have resulted in higher conversion rates, increased order frequency and lower customer acquisition costs. Operational successes include the new warehouse extension entering into full service, giving us the capacity required for business expansion, and the new UK app, which has improved the overall shopping experience."

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