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Boohoo Doubles Revenue Despite High Street Fashion Woes

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By Published On: January 15, 20180 Comments

Online retailer Boohoo.com revealed a 100% lift in revenue contrasted with many high street fashion retailers’ earnings. It's those with strong digital operations that are proving to be more insulated.

Manchester-based Boohoo reports that sales doubled over the Christmas period as younger women flocked to the website to buy their party outfits and gifts.

The pureplay, which caters to fashion and cost-conscious millennials is cashing in on a generation that uses their mobile phones to shop and takes their style-cues from social media.

The company, which owns PrettyLittleThing and Nasty Girl brands saw a 100 percent lift in sales for the four months to 31st December, mainly due to Black Friday promotions in November.

In addition, its collaboration with reality TV start Kourtney Kardashian, which coincides with a boom in plus-sized clothing, has helped Boohoo.com defy the doom and gloom seen by other high street fashion retailers.

UK’s House of Frazer recently revealed a 2.9 percent dip in in-store sales, as well as Mark & Spencer reporting a 2.8 percent drop in non-food revenues.

“We are delighted to report another set of strong financial and operational results, with record sales in the four months to December across all our brands. The Black Friday period was our most successful ever and we traded well throughout the period under review,” said Mahmud Kamani and Carol Kane, joint CEOs of Boohoo.

“Boohoo has continued to perform well, delivering strong revenue growth on increasingly challenging comparatives last year. PrettyLittleThing has continued to deliver exceptional 2 results and Nasty Gal is making excellent progress in its first year. Our focus remains on the customer proposition: offering the best range of the latest fashion at affordable prices, coupled with great customer service.”

Fashion retailers that have strong digital operations are proving to be more insulated from the depressed consumer demand in high street fashion as compared with retailers that have invested more in large store networks. Last week fashion label Ted Baker also reported strong sales thanks to a surge in shopping via its online platform.

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