Boohoo share price soars as trading update suggests etailer is back “on track”

Boohoo's shares soared this morning as investors lapped up a strong trading update from the etailer, following a stumble earlier this year. 

Revenues rose 35 per cent for the three months to May 31, while gross margins climbed more than 60 per cent. 

 

The company, which listed last year, now has 3.3m active customers – an increase of 32 per cent on 2014. 

 

Boohoo's share price jumped more than seven per cent in early trading.

 

It's a strong performance from a company which not too long ago issued a profit warning, sending its share price crashing down 42 per cent. 

 

Back then the young fashion etailer revealed it was just as vulnerable to the impact of the weather as high street retailers, warning that profits would be 26 per cent lower than forecast because of the warm autumn. 

 

It has shrugged that off to post a more reassuring set of figures – though whether it will be enough to return the share price to its pre-January levels remains to be seen. 

 

Joint chief executives Mahmud Kamani and Carol Kane said:

 

"We continue to build boohoo.com for the long term and our clear objective is to deliver sustainable future growth.  

 

“We remain absolutely focussed on the execution of our strategy to continue to invest in our customer proposition and build market share in our key markets.  

 

“Our investments in the warehouse are on track and we plan to begin partial utilisation of the warehouse extension from July.  While we have invested in accelerating our growth during the quarter, our important peak trading periods are yet to come.  

 

“The board's expectations for full-year profit remain unchanged."

As with all clothing retailers, Boohoo will need to make hay while the sun shines.