Boohoo reports strong start to year as sales increase 35%

• UK sales increased 27%, but the rest of the world reported a 66% increase
• The etailer says it has gained new customers who are increasing their order frequency

Boohoo’s UK sales were up 27% for the three months ending May 31, as it gained new customers who increased their order frequency. Total UK sales for the first quarter hit £26.3m and Boohoo said its spring/summer #WeAreUS campaign improved momentum.

International sales also grew and represent 36% of total sales. The retailer said that growth has come from a strategy of concentrating on fewer key markets.

Sales in the rest of Europe increased 27% to £4.9m, but the rest of the world grew 66% to £10.1m over the quarter, driven by price investments and marketing initiatives.

Joint chief executives Mahmud Kamani and Carol Kane said: “We continue to build Boohoo.com for the long term and our clear objective is to deliver sustainable future growth. We remain absolutely focused on the execution of our strategy to continue to invest in our customer proposition and build market share in our key markets.  

“Our investments in the warehouse are on track and we plan to begin partial utilisation of the warehouse extension from July.  Whilst we have invested in accelerating our growth during the quarter, our important peak trading periods are yet to come. The board’s expectations for full year profit remain unchanged.”

In January, the etailer issued a profit warning following a failed marketing initiative which led to a full-year pre-tax profits increase of just 3% in May, lower than had been forecast.