A FASHION firm has cited the expansion of its Burnley warehouse as a key factor in its sizeable sales increase.

Boohoo, which has a sales and distribution site in the Heasandford industrial estate, said sales have risen by a half to almost £74 million in the four months ending December 31, 2015.

MORE TOP STORIES:

The promising figures have led the online fashion retailer to upgrade its full-year revenue forecast.

Mahmud Kamani and Carol Kane, joint chief executives of Boohoo, said: "Trading in the four months to 31 December 2015 has been very encouraging across all regions, with overall revenue growth of 45 per cent."

"Our investments in the customer proposition have resulted in higher conversion rates, increased order frequency and lower customer acquisition costs. Operational successes include the new warehouse extension entering into full service, giving us the capacity required for business expansion, and the new UK app, which has improved the overall shopping experience.

"We remain confident of trading in the remaining two months of the financial year and now expect revenue growth for the full year to be marginally above previous guidance of 30 per cent to 35 per cent. We are trading in line with current market expectations for EBITDA [earnings before interest, taxes, depreciation and amortisation] as we continue to invest in driving growth and building market share across our key markets."

The company has posted total sales of £73.7 million in the four months before the end of 2015, with UK sales also rising by 45 per cent to £49.7 million over the same period.

Boohoo also announced that in the ten months ending December 31, total sales were up by 39 per cent to £164.5 million, with UK sales increasing by 36 per cent to £108.8 million.

The business said it now has 3.9 million active customers, which represents a year-on-year rise of 33 per cent.

After completing the massive warehouse extension last year the company, which has a workforce of around 1,000 in Burnley, announced in November that it was set to expand further by acquiring the former Ultra Finishing site in Widow Hill Road.