Boohoo group announced on Tuesday that it has updated its full-year sales projection. This upgrade is following a strong set of sales over the Christmas shopping period.
For the four months ended 31 December, Boohoo group revenue increased by 44% compared to the same period a year earlier. Gross margins were up 170 basis points to 54.2%.
Full-year group revenue has been updated to fall between 43%-45%. This is above the previously predicted guidance of 38%-43%. Adjusted earnings (EBITDA) was previously guided between the range of 9%-10%, however this has been lowered to 9.25%-9.75%.
The group also posted a strong balance sheet with net cash of £189 million.
Boohoo started as boohoo.com, an online fashion brand targeting young customers.
As for its brands, PrettyLittleThing brought in a revenue of £144.2 million, which is up 95%. Year-to-date revenue is £312.8 million, a 114% jump. Gross margin for the four months is up 56.4%, climbing 110 basis points.
Nasty Gal, another of its brands, bought in £20.6 million, a 74% increase. Year-to-date revenue is £38.3 million, up 89%. Gross margins for the four months is recorded at 54.4%.
The boohoo brand bought in the highest revenue of £163.5 million, increasing 15%. Year-to-date revenue is £372.5 million, rising by 15%. Gross margins for the four months is 52.2%, an increase of 150 basis points.
Boohoo is not the only fashion brand to post strong sales over the festive period.
Luxury brand Ted Baker rallied following a strong Christmas trading period, as did Joules and Selfridges. Elsewhere in the fashion sector was not so positive, with brands such as Footasylum suffering over Christmas.
The joint CEOs, Mahmud Kamani and Carol Kane, commented on the adjusted profit guidance:
“We are delighted to be reporting yet another great set of financial and operational results and would like to say a very big thank you to all our team and customers. We remain firmly focused on continuing to provide our customers with great fashion at unbeatable value. 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.”
At 08:56 GMT today, Boohoo Group plc (LON:BOO) shares were trading at -2.2%.