Boohoo’s sales surged by 45% in the quarter to the end of May as consumers turned to online shopping during the coronavirus lockdown.
The online fashion retailer, which owns brands including Nasty Gal, Pretty Little Thing, Coast and Karen Millen, said consumers were turning to loungewear and athleisure, with the lockdown leading to a more housebound lifestyle.
The company, which is paying £5.25m to take over the online businesses of the Oasis and Warehouse brands, said trading had initially been mixed as the UK went into lockdown. Sales from the middle of March into early April fell as a result of the initial impact of the pandemic. But trade since then has been strong.
The retailer’s shares have bounced back strongly since the market crash in March and they jumped a further 10.7% to 432p as the market opened on Wednesday, up from 157p in mid-March. The company is valued at £5.3bn, compared with Marks & Spencer’s market value of £2.1bn.
“During unprecedented and challenging times the group has delivered a very strong trading and operational performance,” said John Lyttle, Boohoo’s group chief executive. “While there is a period of uncertainty within the markets in which we operate, the group is well positioned to continue making progress towards leading the fashion e-commerce market globally.”
The company said that sales were strong across all geographical areas and soared by 45% to £368m in the quarter to May. In the UK, which accounts for half of total revenue, sales were up 30% to £183m. In the US, Boohoo’s second biggest market, sales rose 79% to £92m.
Boohoo said that its newest acquisitions, Oasis and Warehouse, would be integrated into its online platform. The brands generated £47m in revenues in the year to the end of February. In May, Boohoo raised £198m from investors to take advantage of acquisition opportunities as retail businesses struggle to recover from the pandemic.
The company expects revenues to grow by a quarter this year.
Last month Boohoo bought out a minority stake in its Pretty Little Thing brand. The company paid an initial £270m, potentially rising to £324m, for a 34% stake in PLT, which is part owned by Umar Kamani, the son of Boohoo’s chairman and co-founder Mahmud Kamani.
