Boohoo maintains momentum as group profit soars

Online fashion group Boohoo has reported profit before tax of £45.2 million for the six months to 31 August, as the online fashion pureplay continues its growth trajectory.

The 83% profit increase on the £24.7 million made during the corresponding period last year was attributed to growing market share through relevant marketing, influencer strategy, and digital development. The implementation of automation at its Burnley warehouse earlier this year has also boosted efficiency, the company said.

Group revenue for the half-year hit £564.9 million – up by 43% versus the same period in 2018. Sales growth was reported across all established brands, with Boohoo/Boohoo Man reporting a 34% jump in revenue to £281 million, PrettyLittleThing experiencing a 41% hike to £237.6 million, and Nasty Girl growing 148% to £43.9 million.

No figures were released for the newly acquired Coast and Karen Millen brands, but plans for marketing investment are under way.

John Lyttle, CEO of the group, described the period as “a fantastic first half of the year” for Boohoo.

“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,” he added.

“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."

The group also talked up the benefits of developing its mobile apps in house, with new apps in key markets for Boohoo, Boohoo Man and Nasty Gal released in the first half year. Bringing the apps in-house has resulted in “a far better user experience”, according to the group, which said it brought “greater flexibility for further development and faster introductions of new features”.

PrettyLittleThing’s app is still supported by app commerce company Poq, which has worked with the brand for several years.

Today’s statement indicated all brands will continue to develop its presence on new and emerging social media platforms, off the back of an increase in followers on major sites such as Instagram and Facebook. PrettyLittleThing grew its TikTok following from 20,000 to 310,000 in the period, and it claims to be the fastest growing fashion brand on this burgeoning short-form mobile video channel.

What’s Hot on Essential Retail?