Boohoo (BOO) 👕 - Share Chat

One of the things that repelled me about fast fashion before was the waste these companies would produce.

In the case of Boohoo, ‘green’ initiatives include

  • incentivising customer recycling: it launched a sustainable second-hand range, and it keeps promoting the longevity of its clothes.
  • It’s also working toward better supply chain transparency and it has offered it would allow the auditing of its Leiscester factory. Media frequently painted the place as a reshoring dystopia.

It’s a good question though if a fast fashion company can ever become sustainable.

Lawyers filed class action suits against PrettyLittleThing and Nasty Gal last week following a similar claim lodged against Boohoo last month. Total damages could exceed $100m if the claims succeed, said Almadani Law and AI Law, the firms leading them.

It would be interesting to look into Almadani Law and AI Law and this lawsuit. Why, who, why now, etc.

A successful company will be a target, the question is if that will impede its growth and how well they can fight back.

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What a bargain.

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  • Year-on-year UK sales up 30% in the three months to 31 May, to £183m.
  • Year-on-year US sales up a chunky 79% to £92m.

(source)

This one of those few businesses that Covid-19 only made stronger (Games Workshop is another one).

Those good at e-commerce thrive now. I hate that I invested in JD Sports!

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While the share prices of most UK retailers have suffered big falls, Boohoo’s is at an all-time high. Its £5.2bn market value would see it join the FTSE 100 if it traded on the main market rather than Aim.

Boohoo this week said sales would rise at least 25 per cent this year, a stark contrast to the sharp falls expected at established high street rivals such as Next and Marks and Spencer. Even brands that appeal to the same young customer base as Boohoo, such as Primark and JD Sports, will suffer sales fall this year.

The sales are tiny compared to its peers though.

I hope that means growth potential, and I’m considering to invest in this company.

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Some stuff indicating the downside risk. Some trader called ‘Evil Knievil’ taken a big bet against it - thinks its governance will be the downfall & markets have ignored ShadowFall Report (saying its overstating profits) and some investors are fighting against a £50m bonus for the boss of Boohoo.

Source

Good to know the potential downsides as the business looks to have a really relevant offering - when governance in a business goes wrong, things can come down pretty sharp!!!

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Thanks for this.

I clearly have to do more sleuthing on Boohoo before I commit, and I’d definitely like to avoid all-time high prices if governance issues like this can crop up.

This is just thoroughly disgusting. Glad I sold a while back.

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And the Response to media commentary from BooHoo.

And the share price

Screen Shot 2020-07-06 at 13.50.40

I only bought in a couple of weeks ago at £4.12 a share. :man_facepalming:

Sure it will recover in time.

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No doubt long term it will, but it’ll be interesting to see what happens over the coming weeks.

Not only has it on this but also the accounting scandal to deal with - can imagine a lot are running for the hills at the moment

looking like it will almost halve its value in two days

Yikes. Nearly 1.5 billion wiped off the market cap since yesterday morning.

I would like to know which other clothing companies are using slaves in the UK, because it won’t just be Boohoo

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That’s the reality of fast fashion. If you’re selling products so cheaply it’s always going to involve the exploitation of workers whether the clothes are made in Pakistan or in the UK.
We as consumers can change this.

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True. But there’s still a difference. In these countries that pay would allow an acceptable but low standard of living. Here, in one of the richest countries in the world, it’s despicable.

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I’m surprised there’s still a textile industry in the UK tbh.

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