Boohoo share price: retailer boosts full-year guidance after sales shoot up
In a recent trading update, the online fashion retailer announced that it will upgrade its full-year guidance after seeing strong-than-expected sales growth.
Boohoo upgraded its full-year guidance on Thursday after seeing stronger-than-expected sales growth, with the online fashion retailer expecting sales to increase by between 33% and 38% (against previous guidance of 25% to 30%).
The company anticipates EBITDA margins for the financial year to remain at around 10% - in line with previous guidance - reflecting recent M&A activity over the first-half of the financial year, with it acquiring Miss Pap in March and more recently snapping up Karen Millen and Coast out of administration.
The online fashion retailer also acquired PrettyLittleThing and Nasty Gal in 2017.
Boohoo share price soars after boosting full-year guidance
Boohoo saw its stock climb as much as 16% on Thursday after upgrading its full-year guidance, with the stock trading at 279.9p a share as of 15:40 GMT – hitting an all-time high earlier in the session at 285.8p a share.
The online fashion retailer has benefitted from consumers shift to online, with its stock up more than 50% since January and high street rivals becoming attractive targets.
Boohoo’s recent run of form has seen it outpace online rival ASOS in terms of market value after the latter was hit by two consecutive profit warnings. The former boasting a market cap of £3.26 billion compared to its competitor’s £2.07 billion.
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