ENCOURAGING: Boohoo’s joint chief executive Mahmud Kamani
British online fashion retailer Boohoo.com said price investments and higher marketing spend had helped accelerate sales growth in its key UK market in its first quarter.
The firm, which designs, sources, markets and sells own-brand clothing, shoes and accessories online to a core market of 16-24 year-old consumers in Britain and globally, said UK sales had risen 27 per cent in the three months to May 31.
The rise in Britain, where Boohoo makes 64 per cent of revenue, was ahead of market expectations and an improvement on growth of 13 per cent in its previous quarter.
Shares in the firm, hammered after a profit warning in January, were up 3.9 per cent to 27 pence on Wednesday, though still well below last year’s 50p float price.
Joint chief executives Mahmud Kamani and Carol Kane said “important peak trading periods are yet to come”.
“We continue to build boohoo.com for the long term and our clear objective is to deliver sustainable future growth,” they said in a statement.
“Sales in the UK were up as we continued to grow our share of traffic, acquire new customers and increase order frequency with existing customers on the back of planned increases in marketing spend and investment in our customer proposition.”
Overall, total sales rose 35 per cent, with international sales also up strongly as it concentrates on fewer key markets.
“The pick-up in UK trading is reassuring given its importance to group profitability,” Investec analyst Alistair Davies said, reiterating a buy rating but holding his forecasts due to a tougher comparative trading period ahead.