Online retailer Boohoo has announced the acquisition of 66% of young fashion brand PrettyLittleThing for £3.3m.
PrettyLittleThing was founded in 2011 by Umar Kamani, the son of Boohoo co-founder Mahmud Kamani, and saw revenues increase 400% to £17m in the year to 29 February 2016, with growth expected to exceed 150% for this financial year.
The Boohoo Group will acquire 66% of the issued share capital for PrettyLittleThing, with the option to acquire the remaining 34% at market value in 2022.
Analyst Nick Bubb said the deal valued the PreetyLittleThing at a low rate: “This valued it at not much more than 10% of its likely sales of about £43m this year, whereas Boohoo itself is valued at over four time its sales.”
Commenting on the deal, PLT founder, Kamani said: “PrettyLittleThing has been a great success story over the last couple of years. Our youthful management team enables us to engage directly with our target market, pushing the boundaries of innovation in the celebrity led world of fast fashion. As part of the Boohoo Group, we will continue to build on our strong brand positioning and we are excited by the prospect of continuing to anticipate and set trends.”
Boohoo also announced an upwardly revised forecast for revenue growth, which is now expected to deliver between 38% and 42% for the full year to 3 January 17, up from between 30% and 35%. Boohoo also reported strong sales across the Black Friday weekend.
Boohoo won the fashion pureplay etailer of the year at the Drapers Awards this year, and in November filed a certificate of incorporation for the US young fashion retailer Nasty Gal.