boohoo.com achieves ‘outstanding’ growth as profits almost double

Online fashion business boohoo.com plc has seen its profits skyrocket in the 2016/17 year.

The Manchester-headquartered company grew its pre-tax profits to £30.9m during the 12 months to February 28, up by 97% against the previous year’s £15.7m figure.

Boohoo.com’s group revenues, meanwhile, leapt year on year by 51% to £294.6m, while gross profits achieved growth of 42% at £160.8m.

For the company’s boohoo.com brand, the US proved to be its most fruitful market in terms of sales growth with earnings across the Atlantic leaping by 140% year-on-year.

In the UK, sales growth stood at 33%, in Europe 50% and the rest of the world 40%.

Now, more than a third (39%) of the boohoo.com brand’s total revenues are generated outside the UK.

Elsewhere, the company said it is moving forward with a strong balance sheet, with net cash of £58.4m following capital expenditure and its acquisition of American retailer Nasty Gal.

Mahmud Kamani and Carol Kane, the joint CEOs of boohoo.com plc, said in a statement: “It has been a momentous year for us, with strong results and the acquisitions of PrettyLittleThing on 3 January 2017 and the Nasty Gal brand on 28 February 2017.

“Both brands have huge potential and the acquisitions represent a step change in the size, structure and operation of the group. We are confident that our expertise combined with the strength and following of our new complementary brands will greatly enhance the group’s future growth and profitability.”

They continued: “The boohoo brand has achieved outstanding revenue growth and increased profitability margins during the year.

“We continued to grow strongly in the UK, our largest market, whilst international growth exceeded our expectations, particularly in the USA. Our customer proposition is proving consistently appealing.”

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