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Sales up at Boohoo as margin slips

Boohoo has reported a 35% increase in sales to £90.8m for the six months to August 31. However, promotions at the etailer led to a drop in gross margin.

EBITDA margin was 8.4% for the six months, down from 10.1% year on year reflecting “investment in price, promotions and marketing”.

Gross margin fell 220 basis points to 60.1%. Gross profit increased 30% to £54.5m.

Sales in the UK increased 30% for the period, while the rest of Europe was up 19%. Sales in the rest of the world increased 65% and now account for 35% of total sales. The number of active shoppers using Boohoo soared by 32% year-on-year to 3.5 million customers.

Mahmud Kamani and Carol Kane, joint chief executives, said: “We are pleased to report a successful first half, with strong revenue growth driven by acquiring new customers through our investments in price, promotions and marketing spend.

“We continue to invest in our brand internationally and our strategy to focus on key markets where we see the greatest growth potential remains unchanged.”

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