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UPDATE 1-Retailer continues strong showing in first quarter
June 12, 2014 / 8:06 AM / 4 years ago

UPDATE 1-Retailer continues strong showing in first quarter

(Adds details, analyst comments, share movement)

June 12 (Reuters) - British online fashion retailer reported a 24 percent jump in first-quarter revenue on the back of a strong full-year performance, as recovering consumer confidence spurred more people to shop online.

Shares in the retailer, which floated on London’s Alternative Investment Market in March, rose as much as 7.6 percent to 49.50 pence in early trading on Thursday.

The stock lost about 13 percent in value last week when rival retailer ASOS Plc warned on profits. However, Boohoo reassured the market at that time that it was trading in line with expectations.

Boohoo reiterated its outlook on Thursday and said it anticipated “revenue growth to accelerate as comparatives become less demanding” through the rest of the year.

Boohoo designs, sources, markets and sells own-brand clothing, shoes and accessories through its website to a core market of 16- to 24-year-old consumers in the UK and globally.

The company, majority-owned by its founders Kamani family, said UK revenue rose 44 percent while Europe was up 36 percent in the first quarter ended May 31, adding that revenue growth in May was double that seen in March.

“We do feel reassured by management’s comments that May’s exit rate was twice as fast as March, as the step up in marketing in Q1 started to kick in,” Investec analyst Kate Calvert wrote in a note.

Full-year pretax profit more than tripled to 10.7 million pounds ($17.97 million) at the retailer.

Revenue came in at 109.8 million pounds in the year ended Feb. 28 compared with 67.3 million pounds a year earlier.

Boohoo said it recently amended its pricing strategy in Australia to reflect weakness in the Australian dollar.

A weak performance in Australia dragged the company’s ‘Rest of the World’ revenue down 20 percent.

“As expected 1Q15 update optically a tad behind FY15 growth as a tough comparative and Aussie FX weigh,” Jefferies analysts said in a note.

Shares in the Manchester, northern England-based company were up 5.4 percent at 48.44 pence at 0800 GMT on the London Stock Exchange.

$1 = 0.5956 British Pounds Reporting by Roshni Menon; Editing by Gopakumar Warrier

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