Boohoo’s strong performance is down to a combination of having the fashion product “spot on”, keen prices and investing in delivery promotions in the UK, according to its joint chief executive Carol Kane.
Sales increased 40% year on year to £195.3m for the year to February 29, while gross profit grew by 33% to £112.9m.
“We have ticked a lot of boxes over the last 12 months,” said Kane. “We have continued to invest in marketing, focus on our key markets and we’ve got our fashion spot on. It’s a combination of great product, price and delivery that led to our results.”
However, gross margin fell by 300 basis points to 57.8% during the period.
Kane said promotions on products were the same as last year but the business invested more in offers on delivery during the year.
“Our promotions in the UK have been similar year on year, but we have done more on delivery than product as our UK prices are already very keen. Shoppers respond well to next day delivery offers or free delivery after 9pm,” Kane added.
Casualwear had a “great 12 months”, according to Kane, with sales of trainers, loungewear and bomber jackets up on last year. New launches including swimwear and the introduction of tall and petite sizes also proved popular.
Boohoo launched a menswear only website last month. Kane said it was too early to provide figures, but added: “We have seen an incremental increase in sales since, it has definitely made a difference.
“On the main site we see a lot of women buying for men so the new site is aimed at going directly to that male customer.”
Kane added: “Online is still growing. We had a strong finish to 2015 and a strong start to the year, we‘re not seeing any of the downturn other retailers have.”