Online fashion retailer Boohoo saw shares jump this morning, after a growth in international sales boosted profits.
Profits rose 129 per cent to £14.3 million in the six months to August. Revenues increased 40 percent to £127.3 million, up £90.7 million on the same period last year. The results come after the company issued a profit warning in January last year, hammering their share price.
The results were boosted by a growth in international sales, which now account for 36 percent of the group’s total revenue. The site sees 4.5 million active customers per year, up 28 percent on the previous period.
Joint CEOs Mahmud Kamani and Carol Kane said of the results:
“We are pleased to report a strong performance in the first half of the year, with robust growth across all regions and continued momentum in new customer growth.
“Our inclusive brand, unbeatable choice, together with our incredible prices and fantastic service, continue to inspire and appeal to young customers around the world.
“Through our constant focus on what matters to our customers, together with our investment in technology and operational improvements, we will continue to deliver profitable growth.
In Tuesday’s statement, Boohoo also announced that it may look at acquiring rival site PrettyLittleThing within the next six months.
Boohoo floated at 50 pence a share in 2014, before dropping significantly after profits fell. Its shares have moved upwards since, closing Monday at 97.8 pence and valuing the business at 1.1 billion pounds.
Mahmud Kamani and Carol Kane continued:
“As a result of our continued momentum in the UK and encouraging growth in selected overseas markets, we now expect revenue growth for the full year of between 30 per cent and 35 per cent, reflecting tougher second half comparatives.
“Following the success in the first half of the year we will continue to look for opportunities to invest in marketing campaigns and our customer proposition to drive future sales growth and improve customer lifetime value.
“We will also be making significant investments in our IT systems and Ecommerce platforms. Consequently EBITDA margin for the full year is expected to be around 11 per cent.”
Boohoo (LON:BOO) are currently trading up 1.11 percent at 98.84 (1218GMT).