Boohoo stock jumps after 106% rise in revenue

Manchester-based online fashion retailer said its revenue soared 106% to £120.1 million in the three months to May 31, 2017.

The company said it now expects revenue growth of around 60% for the full year to February 2018, ahead of previous guidance of about 50%. also announced a successful equity fundraising of £50 million to fund expansion — and said joint CEO Mahmud Kamani and his siblings Rabia Kamani and Nurez Kamani agreed to sell more than 36 million shares to collectively raise about £80 million.

The firm’s stock price rose roughly 16% to 256p on Thursday, giving it a current market value of around £2.9 billion. Boohoo’s stock has soared more than 300% in the past year.

The company’s flagship website Boohoo achieved revenue growth of 48% during the three months, taking sales to £86.4 million, while revenue for sister clothing sites PrettyLittleThing and Nasty Gal achieved revenues of £30.7 million and £2.9 million respectively.

Joint chief executives Mahmud Kamani and Carol Kane said: “While it is early in the financial year, boohoo continues to perform well and PrettyLittleThing delivered exceptionally strong revenue growth in the first quarter as it continues to expand its young female customer base.

“Nasty Gal has made a promising start since we acquired the brand, with revenues growing strongly month-on-month, as we increased the product range.”

Boohoo said construction of a second warehouse extension at its Burnley site was under way and was expected to be complete in early 2018, adding 900,000 square feet of storage to the existing 996,000 square feet.

It said this extension would provide sufficient capacity for a £1 billion net sales operation.

Further, Boohoo said the growth rates of the group’s brands were accelerating the need for more warehouse capacity and, consequently, it announced plans to construct a new automated super-site of more than 600,000 square feet which would provide it with more than £2 billion of net sales capacity in addition to the extended Burnley site. 

Kamani and Kane continued: “Across the group, the combination of broadening product ranges, strong brand image, competitive prices and good customer service continues to drive sales momentum, whilst the inclusion of our new brands is proving the potential of our multi-brand strategy in delivering strong group revenue growth.”

Boohoo Stock Price from July 2016 to June 8 2017:

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