Boohoo report surging sales in UK and US

Group sales for Boohoo (LON: BOO) soared 53 percent to £183.6 million in the first quarter of 2018.

Results for the group made up of Boohoo, Nasty Gal and Pretty Little Thing saw sales grow in the UK and US by 49 percent and 75 percent respectively.

“Our multi-brand strategy is delivering above-market rates of growth globally. Significant market share gains have been achieved in all of our key focus markets, with our compelling combination of the latest fashion at incredible prices, backed by great customer service resonating strongly with our customers,” said Mahmud Kamani and Carol Kane, the group’s joint chief executives.

“The scale of group revenue is aligning with our ambition to become one of the dominant global online retailers and our focus on profitability continues to deliver industry-leading margins.”

Despite the strong revenue growth, shares in the group dipped 4.1 percent in early trading to 211p.

Boohoo has said it believes strong sales will continue into the full year and the group expects a  revenue growth of 35 percent to 40 percent.

“Our infrastructure continues to see record levels of investment as we invest ahead of our growth curve and develop a distribution network capable of supporting £3 billion of net sales globally,” added Kamani and Kane.

The group has been investing in infrastructure with significant capital expenditure. Boohoo is expected to confirm an even higher level of spending in 2019. Analysts at Shore Capital said: “Given the sales trajectory of the company we are now entering a phase of increased capital expenditure, as it continues to build out its infrastructure to help facilitate future growth.”

The biggest growth of the group came from Pretty Little Thing, which boasted a 158 percent sales boost.

While high street stores such as New Look and House of Fraser are announcing sliding sales and store closures, online retailers such as Boohoo and Asos (LON: ASC) are reporting impressive results.