The staying power of the online sales boom will be tested when Boohoo reports

The staying power of the online sales boom will be tested when fast fashion giant Boohoo reports its first half results


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The stamina of the online sales boom will be tested on Thursday when Boohoo reports its first half results.

The AIM-listed fast fashion giant has benefited greatly from lockdowns and strict Covid restrictions in stores, forcing many retailers to close stores for months.

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

Thursday’s report will show whether it is on track for the city’s annual forecasts, which estimate sales will grow 25 percent to around £2.8 billion. An important contributor can be new brands.

Russ Mold, investment director of AJ Bell, said: “The June first quarter update contained little or nothing that was disappointing, and perhaps analysts and shareholders are waiting for the first signs of tangible benefits from the acquisition of Debenhams’ brands and websites.” , Wallis and Dorothy Perkins. for 80 million pounds.

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

Separately, there will be a focus on whether the 2020 investigation into Boohoo’s sweatshop scandal has any lasting effect.

Boohoo was rocked by claims that some clothes were packaged in British factories where workers were paid just £3.50 an hour, although there was no evidence that they had committed any crimes.

Investors will also want to hear if bosses believe there is cost pressure due to logistical bottlenecks. Shares closed 3.3 percent, or 8.8p, against 259.7p last night.

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