Company Raises FY17 Revenue and EBITDA Margin Guidance

UK fashion pure play Boohoo.com said that trading trends have been strong since it reported 1H17 results on September 27. The company raised its revenue guidance for FY17 to 38%–42% from 30%–35% previously. The company also raised its FY17 EBITDA margin guidance to 11%–12%, up from previous guidance of around 11%.

PrettyLittleThing Acquisition

Boohoo.com also announced that it has acquired 66% of online fashion pure play PrettyLittleThing for a cash consideration of £3.3 million. The acquisition is expected to be consolidated on January 3, 2017. Boohoo.com previously held an option to acquire 100% of the company and now holds an option to acquire the remaining 34% from PrettyLittleThing’s CEO, Umar Kamani, and other senior management by February 28, 2022. Umar Kamani is the son of Boohoo.com founder and CEO Mahmud Kamani. PrettyLittleThing’s FY16 (ended February 2016) revenues increased by 448% year over year, to £17.0 million. The company’s 1H17 (ended August 2016) revenues increased by almost 200%, to £19 million. PrettyLittleThing is expected to report revenue growth of more than 150% year over year in the fiscal year ending February 28, 2017, and to break even at the EBITDA level. In FY18, the company is expected to grow revenues at a similar annual rate as Boohoo.com. PrettyLittleThing was founded in 2012 and originated as an accessories-only website. The company introduced an apparel range in 2013.