Online fashion success story Boohoo said on Wednesday it would top market expectations for profits and sales again this year after first-quarter results showed revenue up 45% as it adapted quickly to the coronavirus lockdowns.
Shares of the company rose nearly 10% in early deals as it said it was buying the online businesses of Oasis and Warehouse, snapping up a pair of struggling brands it said would help it build on its momentum at a time when many brick-and-mortar retailers are collapsing.
Boohoo, which owns the Nasty Gal and prettylittlething brands, has become a hit with a generation of younger consumers who shop on their mobile phones and share fashion tips on social media. It last year bought Karen Millen and Coast.
"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," Chief Executive Officer John Lyttle said.
Revenue surged to 367.8 million pounds from 254.3 million pounds a year earlier, well ahead of the consensus of a 15% growth, according to Jefferies analysts.
The analysts said they view the acquisition of Oasis and Warehouse "as a low risk and likely high returning opportunity, one that provides further evidence of the long-term potential in boohoo's multi-brand platform".
Manchester-based Boohoo bought the brands from Hilco Capital for 5.25 million pounds.
(Reporting by Pushkala Aripaka in Bengaluru; Editing by Aditya Soni and Anil D'Silva)