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:
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.