Boohoo - BOO - - Share Chat

TL;DR: A worker leaked that Boohoo had a cool 230% growth in processed orders.

Boohoo’s stock price. grew 45% in the past few days.

I don’t want to avail of the overused word “unprecedented”, but it’s quite the rally!

First of all, equities have been on their way up in the past few days. The S&P 500 gained 1.5% today, making this its best week since 1974. (source)

That always helps.

For Boohoo specifically, e-commerce is booming right now.

Anecdotally, I hear from friends selling online that their sales are way up. I reckon it’s because people are literally twiddling thumbs at home and there is not that much diversity in entertainment (Tiger King, I know).

There was a bit of news underscoring this on 7 April.

Basically, the Guardian accused Boohoo and ASOS that they don’t enable social distancing and hence putting their workers at risk. One worker shared a data point:


(paywalled source)

So that’s the bit of news you might be looking for.

But as we learnt from Jeff Bezos, these results have been made quarters ago. Boohoo’s business is well-managed - its supply chain is diverse with 40% in the UK, and it invested £32m on automation at one of its two distribution centres.

For its recently completed financial year, an enterprise value (market cap minus net cash) of about 1.6 x sales is expected by analysts.

Make no mistake, plenty of risk here as is the case with individual shares, but it’s been a well-managed company.

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