Boohoo.com’s sales jumped 31% to £67.2m and pre-tax profits grew by 23% to £4.5m during its first six months as a public company.
The etailer, which floated in March, reported sales in the UK were up 47% to £45.6m in the six months to August 31, while in the rest of Europe they rose by 43% to £8.7m. It is understood the etailer is now on the lookout for its first ecommerce director.
Sales in the rest of the world fell by 11% to £12.9m in the first half, driven by “currency headwinds”. On a constant currency basis, they grew by 1%.
Adjusted EBITDA across all markets was up 63% to £6.8m. The company said trading was in line with expectations for the full year.
Joint chief executives Mahmud Kamani and Carol Kane said: “Since our IPO we have invested in the business significantly. Developments include the completed new mezzanine floor in the Burnley warehouse, a new warehouse management system and opening foreign language sites in Spain, Germany and most recently Italy, as well as the launch of a fully responsive site to improve our mobile offering.”
The new warehouse management system will enable Boohoo to move from an 8pm to a 9pm cut-off for next-day delivery.
The company’s growth in continental Europe accelerated during the first half thanks to the roll-out of foreign language websites. Monthly sales in France and Germany increased by more than 250%; however, the picture was not so rosy in Spain, where the pricing strategy has been revised “to improve momentum in the market”.
Boohoo has already been forced to lower its prices in Australia by 15% because of shifts in currency exchange rates. It has now appointed a country marketing manager to boost sales.
“Our focus remains on further expanding our international footprint while growing sales in the UK,” said Kamani and Kane. “During the current quarter, we have managed our marketing spend and growth during the implementation of the warehouse management system and the launch of the fully responsive mobile website.”
Boohoo said sales of its menswear line, which was first introduced in autumn 13, grew by 46% in the first half of this year. It now represents 3.6% of total sales and has “significant opportunity for future growth”.
The plus-size range, Boohoo Plus, also performed well with first half sales of £1.3m. Kirsty McGregor