There is just no stopping the King of AIM right now. Boohoo’s most recent trading update was more than impressive.
In the 4 months to end of December overall sales increased 44%.
Revenue across the three main brands increased:
- Boohoo up 42%
- Nasty Gal up 102%
- Pretty Little Thing up 32%
Figures were not provided for Karen Millen, Coast or MissPap the three brands acquired in 2019. However Chief Executive John Lyttle said they were “showing great promise”
- Boohoo upped its full year revenue guidance to 40% - 42% ahead of last year, up from 33% - 38%.
- Expect slightly higher margins.
Defying High Street Gloom
What was not to like. These are a stellar set of results that are in stark contrast to the struggles of bricks and mortar fashion retailers on the high street which have posted lacklustre sales and anemic growth in recent trading periods.
The online retailer has successful transitioned from a UK focused firm to an international player with over 40% of sales now coming from outside the UK. As a result, Boohoo is defying the gloom engulfing the UK high street reporting a surge in sales, whist the sector as a whole suffered its worst year on record, according to the British Retail Consortium (BRC); consumer confidence remains low and retail sales weak.
Shares have soared over 5% this morning, rallying to an all-time high of 335.89p. The stock is up 66% across the year.
The stock trades firmly above its 50, 100 and 200 sma, on a strongly bullish chart. The price has inched into overbought territory so a slight pull-back could be on the cards before the firm continues its charge northwards.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.