Online fashion retailer Boohoo reports solid first quarter sales
London-listed online fashion firm Boohoo has posted a stellar 39% rise in first quarter revenue to £254.3m.
The digital fashion firm, founded in Manchester, saw growth across its brands shining a light on an otherwise subdued retail sector.
Boohoo reported strong revenue growth across all its global regions, with UK sales up 27% and international up 56%. Gross margins eased slightly to 55% from 55.2% last time.
"The Group has made a strong start to the year as we continue to disrupt and capture market share in the UK and internationally across all our brands”, said John Lyttle, CEO.
“I’m delighted that the Group topped the UK Hitwise rankings in May for the first time, demonstrating how our multi-brand strategy is really capturing our customers' attention.
“We have ambitious plans for the Group, and continue to invest to ensure that our scalable multi-brand platform is well-positioned to disrupt, gain market share and capitalise on the global opportunity in front of us."
Despite the strong trading update, Boohoo’s shares have been falling this week. Investors became wary after it emerged that a web developer is suing the company’s founder for £118.5m.
Richard Womack has brought a claim against Boohoo’s Mahmud Kamani for breach of an agreement. Womack claims Kamani reneged on a promise to reward him for creating the fashion retailer’s website.
He claims he was promised a 10% share in the company and was essentially Boohoo's "third founder”, the BBC reported.
A spokesman for Mr Kamani described the claim as "entirely without merit".
Boohoo's shares in London were trading 2.3% lower at £2.24 on Wednesday morning.