Boohoo Booms But Can it Last?

The Week: Morningstar columnist Rodney Hobson says the key to Boohoo's future depends on the struggling retailers it has rescued

Rodney Hobson 17 January, 2020 | 9:40AM
Facebook Twitter LinkedIn

Stock market chart

Christmas can be a lonely period, not least if you are a retailer with an empty shop. As trading updates come in covering what should be, for the sector, the most wonderful time of the year, it is once again clear that experiences have varied considerably. Investors should obviously take note.

One of the best performers is Boohoo (BOO), which continues to grow total revenue by 44% year on year. It rode out the Brexit uncertainty to increase UK sales by 42% in the final four months of 2019, a step up from earlier in the year. The rest of Europe and the US eased back a little towards the end but still motored 57% ahead. Only the rest of the world disappointed with sales growing 13% in the latest period, though most retailers would be delighted with that sort of progress.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Facebook Twitter LinkedIn

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Boohoo Group PLC258.70 GBX-1.82
DFS Furniture PLC262.00 GBX0.77
QUIZ PLC18.28 GBX-5.68

About Author

Rodney Hobson

Rodney Hobson  is a columnist for and author of several investing books, including The Dividend Investor and How to Build a Share Portfolio.

© Copyright 2021 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Cookies       Modern Slavery Statement