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Online retailer Boohoo.com raises full-year sales forecast

Published 08/06/2016, 08:12
© Reuters.  Online retailer Boohoo.com raises full-year sales forecast

(Reuters) - Boohoo.com Plc, a British online fashion retailer, nudged up its full-year sales forecast on Wednesday, after a rise in new customers helped first-quarter revenue beat its expectations.

The company said it expected sales for the year to grow between 25 percent and 30 percent. It had earlier expected growth of about 25 percent.

Boohoo's strong growth, improved outlook and growing cash pile placed it in "an enviable position within the retail landscape", Liberum analysts wrote in a note.

They raised their revenue forecast to 251.8 million pounds and hiked their target price to 65 pence from 55 pence.

Boohoo designs, sources, markets and sells own-brand clothing, shoes and accessories online to a core market of 16-24 year-olds in Britain and globally.

The company said revenue rose 41 percent year on year to 58.2 million pounds ($84.7 million) in the three months ended May 31.

Boohoo now has 4.2 million active customers, up 30 percent year on year, it said.

The company said EBITDA margins would be in line with last year, as it planned to invest to bring new customers on board and grow internationally.

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