Online fast-fashion retailer Boohoo on Wednesday turned the screw on the High Street as it said sales had almost doubled.
The company, which owns PrettyLittleThing and Nasty Gal, reported pre-tax profits grew 40% to £43.3 million and sales jumped 97% to £579.8 million for the year to February.
The results contrasted starkly with the travails suffered by many bricks-and-mortar rivals as they grapple with changing consumer habits and higher business costs. Finance chief Neil Catto stated: “People enjoy shopping online.”
Boohoo has had a strong start to the year and it now expects a rise of up to 40% in sales thanks, in part, to PrettyLittleThing. Set up by Boohoo’s co-founder Mahmud Kamani’s son in 2012, the fledgling brand had revenues of £181.3 million, up 228%.
Although shares have been down 40% since June, they rose 22.2p, or 14.4%, to 176.6p today. The City was reassured that investment in marketing, technology and warehouses will not hurt its bottom line. “We have a measured approach to growth, profitability and cashflow,” Catto added.