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Boohoo lists £50m shares and plans ‘super-site’ warehouse as sales double

Sales at Boohoo Group for the three months to 31 May have soared 106% to £120.1m, as the etailer lists £50m worth of shares and announces plans for a £150m “super-site” warehouse.

Like-for-like sales at Boohoo and PrettyLittleThing jumped 78% for the period, while gross margin slipped to 54.2 % from 56% in 2016.

For the Boohoo website alone, revenue was up 48% to £86.4m. Sales in the UK were up 41%, rest of Europe was up 44%, US sales were up 97% and the rest of the world was up 50%.

At PrettyLittleThing like for like sales for the period were up 305% to £7.6m. Sales at Nasty Gal are currently £2.9m.

The etailer said the growth rates of the brands are accelerating the need for more warehouse capacity, so it has announced plans to construct a new automated “super-site” larger than 600,000 sq ft, which will provide Boohoo with more than £2bn of net sales capacity, in addition to the £1bn net sales being provided by the extended Burnley site.

The land acquisition of the new site, together with the construction, will cost around £150m over three years. As a result, the group expects capital expenditure now to be £63m this year, up from the previous guidance of £34m.

Capital expenditure linked directly to the new warehouse is likely to be around £75m in 2019 and around £49m in 2020.

To enable the business to maintain a strong cash position to be able to take advantage of investment opportunities, Boohoo has announced an equity placing to raise £50m.

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