New Customers Drive Boohoo Profit Growth

LONDON, United Kingdom — British online fashion retailer Boohoo.com posted a 39 percent jump in first half profit on the back of strong revenue growth driven by new customers.

The firm, which 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, also said on Tuesday it had made a good start to its second half and was trading in line with market expectations for full year core earnings.

Boohoo floated at 50 pence a share last year but the stock was hammered after a profit warning in January. Its shares closed Monday at 33 pence, valuing the business at 371 million pounds ($563 million).

The firm made a pre-tax profit of 6.3 million pounds in the six months to August 31, up from 4.5 million pounds, on revenue up 35 percent to 90.8 million pounds.

Boohoo said it now has 3.5 million active customers, up 32 percent year on year after it cut prices and stepped-up promotions and marketing spend.

The company makes nearly two thirds of revenue in Britain, where sales rose 30 percent, having increased 27 percent in its first quarter.

"The autumn/winter marketing campaign #WeAreNow is supporting a good start to the second half. We are also pleased with the response to our new app and responsive websites," said joint CEOs Mahmud Kamani and Carol Kane.

The firm forecast revenue growth for the full year of 30-35 percent.

By James Davey; editor: Adrian Croft.