Boohoo share price slides even as retailer posts revenue growth

Shares in Boohoo Group (LON:BOO) have fallen deep into the red in today’s session, even as the London-listed company posted a rise in sales for the four months ended December 31 and hiked its revenue guidance. The update continues the retailer reporting season after Marks & Spencer (LON:MKS) earlier this month.

As of 09:37 GMT, Boohoo’s share price had given up 5.40 percent to 184.10p. The retailer’s shares have lost less than one percent of their value over the past year.

Boohoo posts results

Boohoo announced in a statement this morning that its revenue had grown 44 percent to £328.2 million in the four months to December 31, or 43 percent at constant exchange rates. The group said that its gross margin stood at 54.2 percent, up 170bps, while its net cash came in at £189 million, up from £127 million in the prior-year period.

Going forward, the London-listed retailer expects to deliver revenue growth of between 43 percent and 45 percent in the financial year to February 28, ahead of the company’s previous guidance of between 38 percent and 43 percent.

“We are delighted to be reporting yet another great set of financial and operational results,” Boohoo’s joint CEOs Mahmud Kamani and Carol Kane commented in the statement. “The global growth opportunity is significant and we will be addressing it in a controlled way – investing in our proposition, operations and infrastructure to capitalise on the opportunity.”

Analysts on retailer

Liberum, Shore Capital and Peel Hunt all reiterated their ‘buy’ rating on the London-listed retailer today. According to MarketBeat, Boohoo currently has a consensus ‘buy’ rating and an average price target of 240.44p.