Boohoo.com buys PrettyLittleThing, reveals sales surge
Online fashion retailer Boohoo.com has acquired a majority stake in fashion brand PrettyLittleThing for £3.3 million in a move expected to complement its presence in the UK and internationally.
The e-tailer will acquire 66% of PrettyLittleThing, while the remaining 34%will be used to incentivise PrettyLittleThing’s executive team, said Boohoo.com on Wednesday.
The transaction follows exceptional revenue growth for PrettyLittleThing, which reported a 400% jump in revenue to £17 million in the year to 29 February 2016. This year has also delivered positive results for the brand. with revenue of £19 million in the six months to 31 August, compared with £6.4 million in the first half of last year.
By the end of the financial year, PrettyLittleThing is expected to announce revenue growth of more than 150%.
"PrettyLittleThing was always going to be a natural fit with Boohoo. Umar and his team are to be congratulated for creating a fantastic brand, which complements Boohoo's own inclusive and innovative brand, and we are delighted to add this fast growing, international business to the Group,” said company chairman Peter Williams.
“We believe this is an excellent opportunity to extend the group's overall customer appeal through two distinct, complementary brands while further enhancing the Group's strong growth trajectory.”
In financial year 2018, Boohoo plans to review and invest in PrettyLittleThing’s operations including its warehousing. The UK-based retailer will have the opportunity to acquire the remaining 34% of the business by February 28, 2022.
The acquisition announcement comes on the back of strong trading for Boohoo.com. The company also said Wednesday that trading was strong across the Black Friday weekend and that festive trading continues to be “encouraging”.
As a result, Boohoo has raised its guidance for financial year 2017. Full year revenue is now expected to grow between 38% and 42%, against a guidance of between 30% and 35%, while the EBITDA margin is expected at 11% and 12%, versus its previous guidance of 11%.
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