Boohoo’s share price climbs on 62% revenue growth

on Mar 31, 2014
Updated: Apr 9, 2020
Listen Monday, March 31:, the online fashion retailer, which had its initial public offering two weeks ago, said today in a trading update that its full year results were in line with market expectations. Shares in the newly-floated company are still about 30 percent lower than the 85p high they reached on their first day of trading.

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Boohoo’s board revealed unaudited net revenues for the year ended February 28 of more than ₤109 million, 62 percent higher than in the same period a year earlier. Statutory adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) are expected to have increased by about 200 percent on the previous year. The online fashion retailer said the strong growth was on the back of the rapidly expanding customer base in the UK and overseas.

Boohoo raised about ₤300 million from its IPO and currently has a market capitalisation of about ₤595 million. Last week the world’s largest fund manager BlackRock revealed that it was a major shareholder in the online fashion retailer with 56 million shares or around five percent of the business. The firm joined hedge fund guru Crispin Odey’s company, Odey Asset Management, which had already disclosed a seven percent interest in the business.

**Analysts warn of soaring valuations of high tech companies**

Boohoo’s shares have been highly volatile since their debut on March 17, partially due to growing scepticism over high tech stock valuations. The sector will be tested again on Thursday with the floatation of Just Eat, the online food takeaway service. Advisors have priced its shares at a range of 210p-260p, valuing the company at a stunning 85-104 times 2013 underlying EBITDA. You can read more on Just Eat’s IPO at Just Eat prices IPO shares at 210p-260p.

Online electrical retailer AO World surged 44 percent on its first day of trading in February but has since lost about 17 percent. Some of London’s leading hedge funds are now betting that the share price will slide further, amid speculation that the company makes more money from selling warranties than it does from shifting white goods. About 3.3 million AO World shares, or 1.75 percent of the company’s free float, are out on a loan, according to data from research group Markit.
**As of 12.46 UTC buy Boohoo shares at 53.01p.**
**As of 12.46 UTC sell Boohoo shares at 52.99p.**


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