Boohoo’s (BOO) annual sales surged past the £1 billion mark as the firm drew success from its marketing and international operations.

Sales for £565 million for the six-months to August, which outperformed market consensus. International sales now account for 44% of the group revenue. Meanwhile, its pretax-profits jumped by 83% to £45.2 million over the same period.

John Lyttle, the CEO of the Boohoo, was satisfied with Boohoo’s latest results:

It has been a fantastic first half of the year for the group. We have delivered significant market share gains across all of our key markets, and for the first time in our history, revenue has exceeded £1 billion in the last 12 months.”

Boohoo’s outstanding performance is in contrast to that of the general high street retail. Its flexibility and nimbleness enable the company to stay relevant in the fast-changing fashion scene. Many Boohoo brands are a success with the younger crowd, snatching market share from its rivals such as Asos plc.

The question now is this: Is Boohoo is still a buy at current prices?

Surprisingly, Boohoo’s excellent results yesterday did not send its share price surging. Perhaps investors already suspected Boohoo is doing well and bought into the stock way before. BOO surged to record highs on 5 Sept 2019 – with a market cap exceeding £3 billion – but did little when this result was formally released (see Featured Chart).

At 80x earnings, Boohoo’s valuation is rich. Moreover, BOO’s year-to-date share performance exceeds 65%. Therefore, I would wait for a consolidation before dipping in.

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