Boohoo snaps up Oasis and Warehouse as first quarter sales surge

The online fashion powerhouse acquired the two brands from Hilco, having bought its former stablemates Karen Millen and Coast last year.

The acquisitions will see Boohoo “integrate Oasis and Warehouse onto its platform, allowing both brands to benefit from the group’s insight, infrastructure, supply chain and operating model” over the course of the coming months.

The online retailer launched a £198m share placing to capitalise on the “numerous M&A opportunities that are likely to emerge in the global fashion industry over the coming months” and said that, alongside its most recent acquisitions including the remaining stake in PrettyLittleThing, it would “continue to appraise opportunities and will update shareholders in due course”.

Boohoo posted a 45% jump in revenue to £368m in the three months to May 31, with sales up 83% in the US to £93m and 30% in the UK to £183m. Across the rest of Europe and the rest of the world, sales were up 65% and 22% respectively.

Boohoo forecasts that its full-year sales for its current financial year will be up ahead of market expectations. The fashion etailer anticipates a 25% uplift in full-year revenue and adjusted EBITDA margin of between 9.5% and 10%.

The retailer said its guidance reflects expectations “for an ongoing period of consumer uncertainty” as well as “ongoing investments into our more established brands as well as anticipated investments into new and recently acquired brands through the course of the financial year.”

Chief executive John Lyttle said: “During unprecedented and challenging times, the group has delivered a very strong trading and operational performance. I am proud of how our colleagues and business partners from around the world have responded to ensure that we can safely bring to our customers the latest fashions, great value, fantastic prices and best in class service. Whilst there is a period of uncertainty within the markets in which we operate, the group is well-positioned to continue making progress towards leading the fashion e-commerce market globally.”