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Boohoo profits and sales increase as international scales

Boohoo has reported a 42% increase in pre-tax profits to £15.7 million, while revenue increased 40% to £195.4 million.

The e-tailer reported revenues up by 38% in the UK, with a 25% increase in Europe and 56% increase across the rest of the world. Boohoo now generates 33% of its revenue from outside the UK, the e-tailer stated in its financial results for the year ending 29 February 2016. Adjusted EBITDA was also up 32% to £18.7 million.

Mahmud Kamani and Carol Kane, joint CEOs, said: "We are pleased to report a year of strong revenue growth across all geographic regions. Active customer numbers, order frequency and conversion have all increased on last year as we continue to invest in building customer lifetime value. By refining the mix of promotional and marketing expenditure in each of our key markets, we have achieved growth ahead of our plans."

The two CEOs added: "The worldwide market for internet fashion sales continues to expand as shopping preferences lean towards the convenience and price advantage afforded by internet retailers. We have built a brand and infrastructure to capitalise upon this opportunity and we will continue to grow our market share globally by focussing on key markets."

Boohoo now has 4 million active customers who have shopped in the last year, up 34% on the previous year.

The e-tailer also saw growth in website traffic, up 12% to 206 million sessions, while conversion rate improved from 3.6% to 4.0% of sessions. In the first half of its financial year, Boohoo finished moving all of its international websites onto a responsive web platform.

Mobile and tablet now accounts for 66% of sessions and the online retailer has also introduced Android and iPhone Apps to UK, US and Australian customers after partnering with Poq Commerce. These apps will be rolled out to other territories later in 2016. 

Boohoo has half a million followers on Twitter, with a reach of 9.6 million, as well as 1.4 million Instagram followers and 2.3 million likes on Facebook with a reach of 4.3 million. Customers have watched Boohoo videos on YouTube a million times and the e-tailer is also present on Vine, Snapchat and Pinterest.

Boohoo already offers a midnight cut off for next day delivery, Sunday delivery and Collect+ in the UK. Customers in the UK will soon be able to use the website to choose their preferred return option from April 2016.

The e-tailer has also significantly extended its warehouse capacity, which now stands at 525,000 square feet, more than the size of six football pitches.

"The expansion of our product range has been very well received by our customers and contributed to the strong growth, with the new petite range performing very well along with plus-size which was introduced last year and continues to grow rapidly," Kamani and Kane continued. "The warehouse extension has enabled us to operate smoothly through the peak period this year and will provide sufficient capacity for future growth. We have also secured additional office premises adjacent to our head office in central Manchester which will be developed during 2016."