Boohoo.com PLC (LON:BOO) saw its shares drop on signs of margin pressures, even though the group raised its full-year revenue growth outlook for the second time in four months as it reported a jump in first-half profit and sales..
In late morning trading, Boohoo shares were down 8.6%, or 22.25p at 236.5p.
The AIM-listed online fashion retailer posted a 41% rise in pretax profit to £20.3mln for the six months to August 31, up from £14.1mln a year earlier, as revenue increased by 106% to £262.9mln.
READ: Boohoo raises full year revenue guidance after strong first quarter trading
Boohoo said its revenue growth for the full 2017-18 year was now expected to be around 80%, up from a forecast it made in June of around 60%.
The increase in first-half profits came despite a 200 basis points fall in the retailer’s gross margin, down to 53.3% from 55.3% which the group said reflected “planned investments in the customer proposition”.
Sales were boosted by the group’s recent acquisitions, with PrettyLittleThing seeing a 289% jump in first-half revenue to £72.7mln and the brand forecast to see revenue growth of approximately 150% for the full year.
Mahmud Kamani and Carol Kane, Boohoo’s joint CEOs, commented: “Boohoo's revenue has continued to grow across all geographies, with international growth being strongest as we continue to increase our market share overseas, and the newly acquired PrettyLittleThing brand has exceeded our growth expectations.“
They added: "The strong performance in the first half-year and our expectations for the second half have given us confidence to raise guidance for the full year."
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