Boohoo proves doubters wrong with surging sales

The finance boss of Boohoo has said a hefty jump in sales and profits has helped calm market concerns over the online fashion firm’s growth plans.
Chief financial officer Neil Catto said the company had proven to investors that its heady rise was not running out of steam, sending shares up 13pc on London's junior Aim market.
Pre-tax profit beat expectations, surging 40pc to ?43.3m for the year to Feb 28, thanks to an “exceptional performance” by fashion brand PrettyLittleThing.
Revenues also marched higher, lifting 97pc to ?579.8m over the period, as sub-brand Nasty Gal beat company predictions.
It comes after Boohoo saw its share price drop 40pc following a first quarter trading update in May last year. Analysts feared the company’s need to plough more investment into infrastructure could hit margins.
However, shares recovered some lost ground on Wednesday, as the impact on margins proved less severe.
Mr Catto said: “I think people were wondering if what they had seen before from us could continue, and they were probably reassured that we’ve been able to deliver again.
“There are not many own-brand online companies around, and we are probably at the biggest scale of all of those companies, and so sometimes people wonder what can happen in the future.
“Hopefully if we keep delivering the levels of growth that we are expecting from ourselves, then the market will understand that over time. We definitely feel confident we can keep growing.”
The company now has a market capitalisation of ?2.1bn, making one of the largest on Aim, though still well short of rival Asos's ?5bn market cap, also on the junior market.
Boohoo, which targets 16 to 30-year-old shoppers, saw customer numbers jump 22pc to 6.4 million.
Boohoo proves doubters wrong with surging sales

Boohoo now has a market capitalisation of ?2.1bn
Sales at PrettyLittleThing rocketed by 228pc to ?181.3m. Plans are under way to launch a new warehouse in Sheffield to support PrettyLittleThing's growth.
The dresses and tops seller said it had made a “strong start” to the current financial year, with revenue growth expected to come in between 35pc and 40pc.
Barclays analyst Andrew Ross said: “Investors have been understandably nervous ahead of Boohoo’s full-year results, with lots of questions on the balance of growth and margin. We think these results to some degree reassure.”
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