Boohoo Sales Surge 62% As Profits Triple

Boohoo.com, the Manchester-based fashion phenomenon, has issued its first trading statement this morning following its entry onto the stock exchange two weeks ago.

Boohoo said sales in the year to February 28 increased 62% to £109 million. Ebitda profit in the period rose by more than 200% on the previous year's £3.9 million.

The shares increased 3.9% in early trading this morning to £0.53. That's still above the IPO (initial public offering) price despite the big hike in the price when the shares were first launched amid a mad scramble for the shares. 

The company said the rise was 'in line with market forecasts.' The sales line actually represents a slight slowdown on the 70% rise in the first 10 months of the year - we had forecast £115 million based on continued growth at the same pace.

However, January and February were tough months across the retail sector, and particularly fashion with spring ranges hit by the extreme weather events. So the minor slowdown is understandable.

It doesn't change the fact that Boohoo has some enviable gross margins at 60% despite its low price points and is currently pumping serious money in growth both in the UK and overseas.

It is being boosted by increasing appetite for the brand overseas in Europe, Australia and the US as well as an expansion of its ranges into plus sizes and menswear.