Boohoo (LON: BOO) have once again pulled out an impressive set of results in their update on Tuesday morning.
The firm updated the market this morning saying that it has raised its annual guidance following strong revenue growth.
Also in the update, the firm said that it had appointed former JD Sports (LON:JD) chief financial officer as its new deputy chair.
Brian Small, will take up this position with immediate effect having held executive positions at Mothercare (LON:MTC) and Pendragon (LON:PDG).
For the four month period, which ended on December 31, the firm said that its revenue had jumped 44% to £473.7 million from the £328.2 a year ago.
Boohoo said that it expects revenue growth for its financial year, which ends on February 29 to be between 40% and 42% ahead of their previous guided range of 33% to 38%.
The firm added that t expects adjusted earnings before interest, taxes, depreciation and amortisation margin to be 10% to 10.2%, beating its previous guidance of around 10%.
John Lyttle, CEO, commented:
“I am delighted to report the group has enjoyed record trading in the last four months of 2019. All of our brands have performed exceptionally well and delivered strong market share gains. We have continued to see operating leverage in our more established brands, and will continue to invest into them and our newly-acquired brands. The newly-acquired brands, MissPap, Karen Millen and Coast, are showing great promise and open different target markets for the group, in line with our strategy to build our multi-brand platform.”
Analysts have praised BooHoo for their performance in a market which seems to be slumping.
John Woolfitt, Director of Trading at Atlantic Capital Markets:
“Its not all doom and gloom for retail, well at least not if you are operating online. The fast fashion king Boohoo has today hiked guidance after a record quarter and investors will be pleased with the progress the group has made in 2019.”
“The integration of new acquisitions such as Miss Pap, Karen Millen and Coast will add to earnings potential over the coming year to build on what has been a very successful festive trading period.”
“Investors will take results from Boohoo as additional confirmation that if you are investing in the UK retail sector, you have to focus on the online retailers.”
Boohoo only get stronger
Boohoo have gained strength and consolidated their position in the fashion wear industry.
Just over a month ago, the firm saw their shares soar following reports of record number sales across the Black Friday weekend.
Boohoo said that it saw a record performance over the Black Friday weekend, as trading since the half year period had remained strong.
“Both warehouses have had a strong operational performance,” the online fashion retailer added.
Boohoo said: “Our new brands, Karen Millen, Coast, and MissPap, have been successfully integrated onto our platform. Initial ranges have been very well received, and we continue to broaden our product ranges as we progress our multi-brand strategy.”
In the year to the end of February, boohoo reported 38% growth in pretax profit to £59.9 million, as revenue rose 48% to £856.9 million.
Revenue growth across all territories and brands was strong, the company noted, with UK revenue up 37% and international revenue up 64%.
Boohoo are continuing to defy the odds and theories which suggests that the retail market is slumping, and shareholders will only be getting more and more impressed with the firms performance.
Shares in Boohoo trade at 334p (+5.19%). 14/1/20 10:56BST.