Home Business NewsFinance Boohoo defies retail gloom amid Covid-19 outbreak

Boohoo defies retail gloom amid Covid-19 outbreak

by LLB Editor
17th Jun 20 10:49 am

Online clothing retailer Boohoo continues to defy the doubters. Fresh from its battle with short-seller ShadowFall and a backlash over executive pay, the shares hit record highs again this morning on a bumper trading update.

Any scepticism over demand for its clothes in lockdown, on the premise that its targeted demographic no longer needs to dress up to go out, looks unfounded after a stunning surge in sales.

“The company seems to have adapted to new realities – pitching loungewear and athleisure gear at its customer base to great effect.

“Clearly online retailers have been in a very strong position, with shops having been closed due to lockdown there has basically been nowhere else for people to go.

“Adding insult to injury for physical retail, Boohoo continues to hoover up once proud high street names at knock-down prices.

“Oasis and Warehouse are the latest brands added to the stable for what in relative terms is small change.

“The company still has plenty of cash for bolt-on acquisitions that it can feed into its central operating platform.

“Given the scale of the coronavirus crisis, consumers’ willingness to spend has been impressively resilient, the question for Boohoo is whether this can continue when the full economic fall-out feeds through.”

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