3Q19 Trading Update British online fashion retailer Boohoo Group reported yet another strong quarter. For the four months ended December 31 (equivalent to its 3Q19), the company reported:

• The group generated revenues of £328.2 million, up 43% year over year at constant exchange rates, beating the consensus estimate of £323.3 million by Street Account. At actual rates, the company grew revenues 44%. 
• Boohoo brand revenues came in at £163.5 million, up 14% year over year on a constant-currency basis, above the consensus of £169.8 million. Gross margin for the four months expanded 150 basis points to 52.2%.
• PrettyLittleThing revenues of £144.2 million were up 96% year over year at constant exchange rates, ahead of the consensus of £136.6 million. Gross margin for the four months expanded 110 basis points to 56.4%.
• Nasty Gal revenues of £20.6 million were up 76% year over year, on constant currency basis, below the consensus of £22.7 million. Gross margin for the four months stood at 54.4%.

On a constant-currency basis, for the ten months ended December 31, group revenues increased 46% year over year. Robust sales were driven by growth across all regions and particularly strong growth momentum in the U.S. In the period, on a constant-currency basis, Boohoo brand revenues were up 13% year over year, PrettyLittleThing revenues were up 115% year over year and Nasty Gal revenues were up 93%. Geographic Performance For the four months ended December 31, U.K. sales grew 33% year over year, to £180.0 million. At constant currency, rest of Europe sales increased by 54% year over year to £44.4 million, U.S. sales increased 80% to £70.4 million, and rest of world sales increased 32% year over year to £33.4 million. Mahmud Kamani and Carol Kane, Joint CEOs, commented: “We remain firmly focused on continuing to provide our customers with great fashion at unbeatable value. The global growth opportunity is significant, and we will be addressing it in a controlled way — investing in our proposition, operations and infrastructure to capitalize on the opportunity.”  Outlook The company raised its full-year revenue guidance:

• The company now expects group revenue growth for the financial year ending February 28, 2019 to be in the range of 43%–45%, above previous guidance of 38%–43%. 
• The company expects adjusted EBITDA margins to be in the range of 9.25%–9.75%, narrowing from the previous range of 9%–10%.