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International success helps sales grow 22% at Boohoo

Boohoo.com’s revenue rose 22% to £21.9m in the two months to February 28, as the etailer focused on driving margin following a challenging third quarter.

UK sales increased 13% to £14.6m, while the rest of Europe and rest of the world showed strong growth, up 32% to £2.9m and 56% to £4.4m respectively.

Overall gross margin was approximately 58%, compared with the full-year margin of 61%, reflecting the January Sale.

Mobile conversions increased by more than 40% during the quarter, following the launch of Boohoo’s responsive website in September.

The etailer issued a profit warning in January after heavy promotional activity on the high street hit sales growth. Today it said EBITDA margin for the full year is expected to be in line with the previous guidance of 10%.

Boohoo said it would focus on improving conversions and profit margin during the period ahead, accelerating its marketing spend for spring 15. Early indications suggest the ‘We are us’ marketing campaign launched earlier this month is being well received.

It is continuing to invest in infrastructure and IT and expects the construction of the extension to its Burnley warehouse to be completed during April, which it said “will provide significant capacity for future growth”.

Joint chief executives Mahmud Kamani and Carol Kane said: “We continue to build our business for the long term, as we stated at our IPO last year, and our clear objective is to deliver sustainable growth. We remain absolutely focused on execution and are increasing our marketing spend in the full year 2016 to drive momentum in the business.”

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