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Pre-tax profits almost doubled last year at Boohoo after the online fast fashion retailer aimed at millennials made several acquisitions and continued its rapid international expansion.
Revenues rose 51 per cent to £295m in the year to February 28, which slightly ahead of analysts’ expectations despite the company upgrading its guidance five times in the year, while pre-tax profits rose 97.4 per cent to £31m.
The company deepened its push into the US, where revenues for the main boohoo.com brand rose 120 per cent at constant currencies. Excluding contributions from PrettyLittleThing, an online retailer in which it acquired a controlling interest for £3m, and Nasty Gal, a brand it bought out of bankruptcy for $20m, revenues rose 45 per cent to £283m.
Boohoo said it expected revenue growth “approaching” 50 per cent during this financial year and a margin on earnings before interest, tax, depreciation and amortisation of about 10 per cent.
The performance is a sign of how Boohoo and rivals such as Asos and Missguided are disrupting the clothing market as mainstream retailers such as Debenhams struggle with the costs associated with their large store estates. The company’s shares have risen 295 per cent over the past year, giving it a market capitalization of £2.1bn