Boohoo has reported a 45% increase in revenue for the four months to December 31, however gross margin fell 290 basis points driven by “planned investments in price”.
UK sales were up 45% at the etailer while the rest of Europe was up 33% and the rest of the world was up 52% year-on-year.
Retail gross margin for the period was 57% down, 290 basis points on 2014 as the business invested in “price, customer proposition and marketing.”
Mahmud Kamani and Carol Kane, joint chief executives said: “We have continued to optimise the mix of promotional and marketing spend to drive strong retail growth. Our investments in the customer proposition have resulted in higher conversion rates, increased order frequency and lower customer acquisition costs. Operational successes include the new warehouse extension entering into full service, giving us the capacity required for business expansion, and the new UK app, which has improved the overall shopping experience.”
They added: “We remain confident of trading in the remaining two months of the financial year and now expect revenue growth for the full year to be marginally above previous guidance of 30% to 35%. We are trading in line with current market expectations for EBITDA as we continue to invest in driving growth and building market share across our key markets.”