Boohoo - More Valuable than M&S
Fiona Cincotta January 14, 2020 6:35 AM
Boohoo’s most recent trading update was more than impressive.
There is just no stopping the King of AIM right now. Boohoo’s most recent trading update was more than impressive.
In the 4 months to end of December overall sales increased 44%.
Revenue across the three main brands increased:
- Boohoo up 42%
- Nasty Gal up 102%
- Pretty Little Thing up 32%
Figures were not provided for Karen Millen, Coast or MissPap the three brands acquired in 2019. However Chief Executive John Lyttle said they were “showing great promise”
- Boohoo upped its full year revenue guidance to 40% - 42% ahead of last year, up from 33% - 38%.
- Expect slightly higher margins.
Defying High Street Gloom
What was not to like. These are a stellar set of results that are in stark contrast to the struggles of bricks and mortar fashion retailers on the high street which have posted lacklustre sales and anemic growth in recent trading periods.
The online retailer has successful transitioned from a UK focused firm to an international player with over 40% of sales now coming from outside the UK. As a result, Boohoo is defying the gloom engulfing the UK high street reporting a surge in sales, whist the sector as a whole suffered its worst year on record, according to the British Retail Consortium (BRC); consumer confidence remains low and retail sales weak.
Chart Thoughts
Shares have soared over 5% this morning, rallying to an all-time high of 335.89p. The stock is up 66% across the year.
The stock trades firmly above its 50, 100 and 200 sma, on a strongly bullish chart. The price has inched into overbought territory so a slight pull-back could be on the cards before the firm continues its charge northwards.
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.
Your form is being processed.