LONDON (Reuters) — British online fashion retailer Boohoo.com said price investments and higher marketing spending helped accelerate sales growth in its key U.K. market in its first quarter.
The firm, which designs, sources, markets and sells own-brand clothing, shoes and accessories online to a core market of 16- to 24-year-old consumers in Britain and globally, said U.K. sales had risen 27 percent in the three months to May 31.
The rise in Britain, where Boohoo makes 64 percent of revenue, was ahead of market expectations and an improvement on growth of 13 percent in its previous quarter.
Shares in the firm, hammered after a profit warning in January, were up 3.9 percent to 27 pence in early trading on Wednesday, though still well below last year’s 50 pence float price.
“The pick-up in U.K. trading is reassuring given its importance to group profitability,” Investec analyst Alistair Davies said, reiterating a buy rating but holding his forecasts due to a tougher comparative trading period ahead.
Overall, total sales climbed 35 percent, with international sales also up strongly as it concentrates on fewer key markets.
Boohoo maintained its full-year profit expectations.