Boohoo makes City’s eyes water by doubling profits

Online fast-fashion retailer Boohoo left High Street rivals out in the cold today as it said full-year profits doubled in the past year.

The company said sales rose by 51% to £294.6 million in the year ended February 28, helped by newly acquired business PrettyLittleThing and stellar growth in the US.

Pre-tax profits were 97% higher at £30.9 million. Boohoo, which also recently bought US brand Nasty Gal, upgraded forecasts for the fifth time in a year, predicting revenue growth of around 50% over this year.

The performance contrasts starkly with traditional clothing sellers such as Next and Debenhams, which have been struggling with rising costs of stores and a shift towards leisure spending.

Boohoo’s joint-chief executives Carol Kane and Mahmud Kamani said that last year saw a “step change in the size, structure and operation of the group”.

They added that the new financial year had made “a promising start and we are excited about the prospects of our development into a multi-branded business”.

Boohoo shares have rocketed almost 300% in the past year, valuing the company at £2.1 billion, more than triple the value of Debenhams.

Today Boohoo, which listed on AIM in 2014, was down 7.5p at 182.35p, with some analysts viewing the latest upgrade as conservative.