Boohoo shares soar as fast fashion firm targets rapid growth – Telegraph.co.uk
Shares in fast fashion firm Boohoo have jumped more than 8pc after the Aim-listed company completed a £50m fundraising and said more takeovers could be on the cards.
The Manchester-based company, co-founded and run by Mahmud Kamani and Carol Kane, said it would use the cash raised to help fund a £150m new “super-site” warehouse in Burnley as part of its expansion plans.
Boohoo also reported a doubling of first-quarter sales to £120m and said revenue growth for its current financial year is now expected to be 10 percentage points higher, at 60pc, thanks to “exceptionally strong revenue growth” from fashion brand PrettyLittleThing, which it bought in December.
Boohoo’s market cap is now worth just shy of £2.7bn, making it the second largest Aim firm behind rival online clothes store Asos, valued at £5.1bn.
Boohoo – which turned over £294.6m last year – hopes to hit £3bn sales within seven years.
The firm has built up a reputation for rapidly responding to fashion trends, using its UK manufacturing base to produce small batches of clothes that can be scaled up and repeated if they prove popular. Having won over twenty-somethings with its offering, the firm has recently launched childrenswear, maternity and bridal ranges.