When will it stop? Boohoo upgrades sales forecast yet again
Boohoo has upgraded its sales forecast yet again, saying this morning that sales will double this year.
Previously, Boohoo said its sales growth would be in the range of 46-48 per cent for the full year to 28 February. The online retailer, which targets millennials, said it had also improved its operations, meaning its margins would come in at the top range of its previous guide of between 11 per cent and 12 per cent.
Read more: Boohoo moves forward with $20m acquisition of Nasty Gal
Boohoo's sales have gone from strength to strength – and so has its share price. This morning, Boohoo's share price rose 3.5 per cent on the back of its profit upgrade. Over the past year, the retailer's share price has jumped more than 253 per cent.
Alistair Davies, analyst at Investec, said the company had made a "strong finish to the year" and had room for even more growth; it acquired rival Pretty Little Thing last year, and today said that it had finished its acquisition of Nasty Gal, an American rival which went bust towards the end of 2016.
"Performance came from all channels," Davies said. "The better trading comes from both Boohoo and Pretty Little Thing, according to management. February's trading was stronger than January helped by the new collections, with regional trading patterns similar to those reported previously."
Boohoo bought Nasty Gal for $20m (£16m), which will be financed through cash and a new bank loan of £12m.