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Boohoo profits soar

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Boohoo profits soar

Boohoo group plc (LON:BOO) posted a leap in profit before tax on Wednesday in its half year results.

Shares in the UK-based online fashion retailer were up during trading on Wednesday.

Boohoo, which was founded in Manchester in 2006, said that profit before tax for the six months ended 31 August grew 83% to £45.2 million.

Meanwhile revenue rose 43% to £564.9 million.

The company also owns the brands PrettyLittleThing and Nasty Gal.

The online fashion retailer said that it is increasing its market share through “highly effective marketing strategies”.

Indeed, the company uses a range of high profile celebrity campaigns, influencer associations and digital and traditional marketing initiatives.

Love Island contestant Maura Higgins joined the list of celebrities recently as she signed for boohoo.com as a UK brand ambassador.

“It has been a fantastic first half of the year for the group,” John Lyttle, CEO, commented in a company statement.

“We have delivered significant market share gains across all of our key markets, and for the first time in our history, revenue has exceeded £1 billion in the last 12 months,” the CEO continued.

“We have delivered strong growth and operating leverage in our more established brands and will continue to invest in both our more established and newly-acquired brands. We enter the second half of the year well-placed and confident that our platform, which combines the latest fashion, great prices and excellent customer service, all underpinned by a well-invested infrastructure, will deliver further market share gains.”

Boohoo confirmed that it continues to maintain a “highly positive outlook” for the online fashion sector globally.

As for the UK high street, many retailers have suffered lately amid a gloomy trading environment.

Earlier this year, Boohoo also posted a rise in group revenue for the three months to the end of May.

The company is aimed at 16-30 year olds and offers low-cost clothing, shoes and accessories.

Shares in Boohoo Group plc (LON:BOO) were trading at +0.45% as of 10:22 BST Wednesday.