Affordable clothing brand Boohoo has raised its full-year profit guidance after avoiding troubles on the high street to report strong Christmas sales. The Aim-listed company which owns Nasty Gal, Pretty Little Thing and Boohoo websites, reported a 43 per cent rise in revenues to £328.2 million in the four months to the end of December. Group revenue grew in all its regions, with Britain 33 per cent, the rest of Europe up 57 per cent, the USA up 78 per cent and the rest of the world 35 per cent higher.
The retailer said it expected revenue growth for the full year to be between 43 per cent and 45 per cent, up from its previous forecast of 38 per cent to 43 per cent. Mahmud Kamani and Carol Kane, co-founders and joint chief executives at Boohoo, said they were “delighted”. Releasing a statement, they said, “The global growth opportunity is significant and we will be addressing it in a controlled way, investing in our proposition, operations and infrastructure to capitalise on the opportunity.”
Retailers currently face a tough trading environment in Britain, with consumers wary about spending amid political and economic uncertainty. The retail health index shows the industry continuing to decline and Paul Martin, co-chairman of the Retail Think Tank and UK head of retail at KPMG, said December 2019 had been the worst in a decade. Boohoo was founded in Manchester in 2006, growing rapidly in the UK and internationally. It is valued at over £2 billion. The company is preparing to expand and recently named John Lyttle, Primark's chief operating officer, as its new chief executive.