Fashion retailers Boohoo and Primark have both reported better than expected sales – highlighting how both online fast fashion and in-store are thriving.
Boohoo posted a 49% jump in annual profits on revenues of £856.9 million for the year to 24 April 2019 – shares are up 40%. Primark, meanwhile, reported operating profit up 25% to £426 million over the same period, however shares have dropped on the news.
Most of Boohoo Group’s growth has come from its sub-brand PrettyLittleThing, which it purchased last year along with up-and-coming brand Nasty Gal. PrettyLittleThing contributed revenue of £374.4 million, up 107% (107% CER) with a gross margin of 56.6% up 140bps. Nasty Gal delivered revenue of £47.9 million up 96% (100% CER).
Boohoo has been steered to growth by new CEO John Lyttle, who joined the company from Primark. He says: ““I am very excited to have joined the boohoo Group at this key stage of its growth, with the group’s disruptive and proven business model having delivered yet another excellent set of financial and operational results. In my short time within the business, I am delighted to have been able to meet a number of hugely talented people and have already been able to see many parts of the business. This has confirmed my belief and optimism that the group’s investments into its…