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Boohoo to report strong first quarter trading, boosted by PrettyLittleThing acquisition

Last updated: 11:29 05 Jun 2017 BST, First published: 10:05 05 Jun 2017 BST

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Boohoo is expected to report a 35% increase in first quarter revenue

Boohoo.com plc (LON:BOO) is expected to report a strong first quarter trading update on Thursday, boosted by the recent acquisition of a controlling stake in PrettyLittleThing.

Shares rose 2.53% to 222.50p in morning trading.

Andrew Hore, editor of the AIM Journal, told Proactive Investors the online fashion retailer has made a solid start to the year with revenues estimated to be up 35% in the first quarter.

''They're going strongly ... they're already the second biggest company on AIM after rival ASOS,” he said.

Boohoo expands with PrettyLittleThing and Nasty Gal acquisitions... 

Hore said the results would have received a lift by the contribution of online fashion retailer PrettyLittleThing. Boohoo bought a 66% holding in 21 Three Clothing, which trades as PrettyLittleThing, for £3.3mln in cash in January.

The group also bought the intellectual property and customer data of Nasty Gal brand in February for US$20mln. The acquisition came after Nasty Gal, a fellow web-based fashion retailer, declared bankruptcy in November.

A TV series about the Nasty Gal brand, called Girl Boss and co-produced by Hollywood actor Charlize Theron, was released on Netflix in April.

Boohoo's shares surge...

Shares in Boohoo have risen more than 65% in the year to date and more than 167% over the past 12 months.

In April, the company reported a 97% increase in annual pre-tax profit to £30.9mln, driven by robust demand in its home market and overseas, particularly in the United States.

Mahmud Kamani and Carol Kane, Boohoo’s joint CEOs, said: "It has been a momentous year for us, with strong results and the acquisitions of PrettyLittleThing on 3 January 2017 and the Nasty Gal brand on 28 February 2017.

“Both brands have huge potential and the acquisitions represent a step change in the size, structure and operation of the group.”

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