What crisis? Boohoo is online fashion's real winner

Boohoo’s latest quarterly results show the company is bypassing the Covid-19 crisis and snapping up ailing retailers on the way.

The online fashion giant’s purchase of Oasis and Warehouse e-commerce websites for just 5.3 million pounds is virtually unheard of. “What’s not to like?” says Nigel Frith, senior market analyst at AskTraders.com. “Boohoo is going from strength to strength. Not only has the fast fashion online retailer managed to continue to build on April’s impressive sales, but the AIM-listed firm is also snapping up bargains that the coronavirus crisis has left in its trail.”

“Few firms have managed to perform well in coronavirus lockdown, but Boohoo is definitely one of them. It has outperformed in the crisis in every way with sales surging, profits being upgraded and acquisitions in full swing. The strategy of buying up high street names with strong brands but poor sales and transferring them to its online platform is proving to be a winner.”

“The move by Boohoo to buy up Warehouse and Oasis is part of a bigger shift of high street stores moving online. This was a transition that was in play prior to coronavirus. However, the covid-19 outbreak has accelerated a shift in habits that was already well underway.”

“The stock has jumped over 10 percent on the open as investors just can’t get enough of this winner.”

Image via Boohoo