Boohoo sales surge, but shares drop back

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Boohoo sales surge, but shares drop back

Online fashion outfit (LON:BOO) announced that revenues in the three months to 31st May were £183.6 million, a rise of 53% relative to the same period last year, with strong performances across geographies and brands. Growth was particularly strong in the US, where sales were up by 75%.

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Gross margins also rose by 100 basis points at the group level, despite sizeable drops in some of the firm’s lesser brands. Despite these improvements, full year guidance was maintained. Some analysts grumbled, including those at Liberum, which downgraded the stock from “buy” to “hold” and said that the company wasn’t investing enough for the long term in a highly competitive industry. Shares in Boohoo dropped by 1.53% to 216p as at 1400 BST.

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