Manchester fashion retailer boohoo.com has acquired 66% of Ancoats-based PrettyLittleThing for £3.3 million.
The remaining 34% will be used to incentivise PrettyLittleThing CEO Umar Kamani and his senior management team.
PLT’s revenue grew by more than 400% to £17.0m in the financial year ended 29 February 2016 (FY 15: £3.1m), and revenue was £19m in the six months to 31 August 2016 (H1 16: £6.4m).
Boohoo CEOs Carol Kane and Mahmud Kamani
Boohoo.com says the transaction is expected to complement the group’s presence both in the UK and internationally. It has continued to perform well since reporting its interim results on 27 September.
Trading was strong across the Black Friday weekend and peak season trading continues to be encouraging. Reflecting this strong trading performance, the Board now expects boohoo.com to deliver revenue growth of between 38% and 42% in the next financial year, against previous guidance of between 30% and 35%.
Boohoo continues to benefit from improved operating leverage in the business, and the board anticipates an EBITDA margin of between 11% and 12% in FY 17, against previous guidance of around 11%.
In addition, the boohoo Group will benefit from the acquisition of 21 Three Clothing Company Ltd which is expected to be consolidated from 3 January 2017. PLT was founded by Boohoo boss Mahmud Kamani’s sons Umar and Adam in 2012 and is popular with celebrities including Hollywood actress Lindsay Lohan and The X Factor winners Little Mix.
