Boohoo’s (LON:BOO) share price has soared in London this Thursday as the online clothing retailer lifted its full-year sales growth guidance following a better-than-expected first half. The news marks another boost for the company which inked a deal to buy British brands Karen Millen and Coast last month.
As of 10:07 BST, Boohoo’s share price had added 16.32 percent to 283.00p. The retailer has seen its shares add more than 58 percent to their value over the past year.
Boohoo lifts FY guidance
Boohoo updated investors on its recent trading this morning, saying that its performance in the first half of the year had “been ahead of expectations with strong revenue growth driving operating leverage across key brands”.
As a result, the retailer now expects that its results for the current financial year will be ahead of previous guidance, with sales growth now expected to come in between 33 percent and 38 percent, up from the company’s previous guidance for sales growth of between 25 percent and 30 percent. EBITDA margins for the year meanwhile are expected to remain around 10 percent, in line with the previous guidance, reflecting anticipated investments across the financial year into the three brands acquired by the company in the first half of the year.
Boohoo is set to post interims on September 25.
Analysts on retailer
“This is another impressive update from the group – over the past year we have already upgraded our FY20E PBT by 16 percent – where the multi-brand, multi-geography approach is working very well,” analysts at Liberum commented, as quoted by Proactive Investors. “All the brands continue to gain share in their focus markets as Boohoo’s branded, fast-fashion, lowed-priced offer supported by its test-and-repeat model sits in a sweet spot that is driving strong growth across territories.”
According to MarketBeat, the company currently has a consensus ‘buy’ rating and an average valuation of 267.50p.