Sustaining power of online sales boom will be tested during Boohoo report

Resistance of online sales boom to be tested when fast-fashion giant Boohoo releases first-half results










The resilience of the online sales boom is tested on Thursday when Boohoo releases its first half results.

The AIM-listed fast fashion giant has been a big beneficiary of Covid’s strict store closures and restrictions, which have forced many retailers to shut their stores for months.

Online sales for the top 20 online retailers, including Boohoo, hit a record £ 16 billion last year.

Thursday’s report will show whether he is on track for the city’s annual forecast, which estimates sales will rise 25%, to around £ 2.8bn. A key contributor could be new brands.

AJ Bell Chief Investment Officer Russ Mold said: “The June first quarter update presented little to nothing disappointing, and perhaps analysts and shareholders are waiting for the first signs of tangible benefits of acquiring the Debenhams, Wallis and Dorothy Perkins brands and websites for £ 80million.

“The acquired Warehouse and Oasis brands were fully operational at the time of the annual results in May. ”

Separately, the focus will be on whether the 2020 investigation into the Boohoo sweatshop scandal is having a lingering effect.

Boohoo was rocked by claims that some clothing was packed at UK factories where staff were only paid £ 3.50 an hour, although there is no evidence that he committed any crimes.

Investors will also want to know if bosses think logistics bottlenecks are putting cost pressures. Shares closed 3.3%, or 8.8p, down at 259.7p last night.

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David A. Albanese