Boohoo.com (LON: BOO) 1H17 RESULTS: VERY STRONG PERFORMANCE AND INCREASED GUIDANCE

Executive Summary

• British online fashion retailer boohoo.com reported £127.3 million in revenues, in the 6 months ending August 31, 2016, beating the consensus estimate of £126.6 million and up 40.2% from £90.8 million in the 6 months to August 31, 2015. 1H17 constant-currency revenues increased 41% year over year.
• 1H17 Diluted EPS was 1.01 pence for 1H17, up 124.4% from 0.45 pence in 1H16 and in line with the consensus estimate.
• Following the strong performance in 1H17, boohoo.com has raised its revenue guidance outlook for the third time this year. The company now expects FY17 revenue growth to fall in the range of +30-35%. The company also stated that it expects an FY17 EBITDA margin of 11%, up 140 bps from 9.6% in FY16. However, this marks a sequential deceleration from the 1H17 EBITDA margin of 13%, as the company will make significant investments in IT systems and e-commerce platforms in 2H17.