The City warmed to Boohoo.com today as the internet retailer revealed shoppers adding summer fashion to their online baskets helped first-half sales rocket — but shares continued to languish below the flotation price.
Shares in the Manchester-based online fashion retailer rose 8% to 44.25p after it revealed sales increased 31% to £67 million in the six months to August 31.
Group sales stepped up 37% in the second quarter driven by a buoyant performance in Europe where the launch of a German language site enticed shoppers.
Oriel Securities analyst Jonathan Pritchard said: “Boohoo continues to trade strongly across the globe.
"A return to the black in “rest of the world” is pleasing but overall the continued evolution of the brand and the response to the step up in marketing is highly reassuring.”
In an upbeat note, Investec analyst Kate Calvert said: “The second quarter saw an accelerating sales trend as a result of management stepping up investment in customer recruitment, enhancement of the proposition in Europe and through the launch of local language sites and rebasing of prices in Australia.”
Boohoo’s shares have remained below or around its 50p float price since its £560 million flotation in March, hit by scepticism over valuation of online stocks and market concerns after rival Asos issued a profit warning in June.
The company, led by joint chief executives Mahmud Kamani and Carol Kane, has invested the proceeds of the float into its Burnley warehouse, IT systems and repaying loans.
