Boohoo.com (AIM:BOO) nice update although we sense share buy back will not go down well
Following a challenging third quarter to their financial year the online fashion group has delivered a positive update although the decision to instigate a share buy-back, essentially from new money raised in March 2014 is a little bizarre.
Notwithstanding, many businesses would dearly love the kind of growth that Boo has delivered! During the two months to February 2015 the Group focussed on driving customer conversion and margin. January is a promotional month and February a transitional month into the Spring season so they held marketing spend at c.10% of sales (sounds eminently sensible) ahead of increasing that towards levels seen in the first quarter last year. Early indications suggest that their Spring campaign is being positively received and was trending at the number one position on Twitter on launch day. The Group continued to gain market share…