Staying power of online sales boom will be tested when fast fashion giant Boohoo reports its first-half results
The staying power of the online sales boom is tested on Thursday when Boohoo reports its first-half results.
The AIM-listed fast fashion giant was a big beneficiary of lockdowns and tight Covid restrictions in shops, which forced many retailers to shut stores for months.
Online sales for the 20 biggest online retailers, including Boohoo, hit a record £16billion in the last year.
Thursday’s report will show whether it is on track for the City’s annual forecasts, which estimate sales will grow 25 per cent, to around £2.8billion. A key contributor could be new brands.
AJ Bell investment director Russ Mould said: ‘June’s firstquarter update featured little, if anything, that was disappointing, and perhaps analysts and shareholders are waiting for the first signs of tangible benefits from the acquisition of the Debenhams, Wallis and Dorothy Perkins brands and websites for £80m.
‘The acquired Warehouse and Oasis brands were fully up and running at the time of the full-year results in May.’
Separately, there will be focus on whether the 2020 investigation into Boohoo’s sweat shop scandal is having a lingering effect.
Boohoo was rocked by claims that some clothes were packaged in UK factories where staff were paid as little as £3.50 an hour, though there was no evidence it had committed any crimes.
Investors will also want to hear if bosses believe there are any cost pressures from logistics bottlenecks. Shares closed down 3.3 per cent, or 8.8p, at 259.7p last night.