Sales on boohoo.com up by 62 percent

Online fashion retailer boohoo.com has announced annual sales are up by 62 percent on last year after recently floating on the stock market.

Earnings before interest, taxes, depreciation and amortisation for the company increased by over 200 percent, reaching revenues of £109 million in the year end to February. After this announcement, shares in the company rose 2 percent to 52p, valuing the company at £600 million.

However, boohoo.com is currently trading on 50 times its estimated annual earnings, but co-chief executive Mahmud Kamani remains positive, saying it reflects the potential in the company: “I don’t know anything about a bubble, I know about Boohoo. The valuation is set by the market and the investors. We need to invest in our business.”

The company sells own-brand clothing for men and women, and its biggest rival is Asos, who has recently issued a profits warning. It’s based in Manchester and was originally founded by Kamani and his business partner Carol Kane back in 2006.

Research company Oriel commented on boohoo.com‘s trading update, saying that it highlights the company’s ability to turn revenue growth into profits. Alistair Davies from Oriel said: “The growth prospects for the business look strong in both the UK and internationally as the business invests in increased levels of marketing. Whilst no comment has been made on current trading, we estimate that the group’s exit growth rate is in excess of 30pc.”