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

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.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Boohoo Group PLC315.91 GBX4.64
DFS Furniture PLC224.00 GBX-3.03
QUIZ PLC10.96 GBX-2.11

About Author

Rodney Hobson

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

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