As Boohoo prepares to announce full-year results, investors still focused on response to sweatshop slavery scandal
Boohoo investors have been subjected to a roller-coaster ride in the last 12 months despite booming demand for online fashion and a series of well received acquisitions.
The internet-only retailer has snapped up Debenhams and a series of bombed out Arcadia brands on the cheap, and promised the ‘transformational’ deals could be a stepping stone to it becoming a leader in UK retail.
But, as the business prepares to announce its full-year results on Wednesday, investors are still focused on its response to the sweatshop slavery scandal.
The share price, up 1.2 per cent, or 4.1p, to 340.1p last night, remains well down on the 415p peak before investigative reporters revealed its staff were illegally underpaid.
But investors are starting to sense an opportunity as the firm’s response wins plaudits.
It has appointed a top judge, Sir Brian Leveson, to oversee the shake-up of its supply chain, severed ties with more than 400 suppliers and published a list of everyone it now deals with on its website.
Boohoo executive chairman Mahmud Kamani has even said the board is looking at linking bonuses with Environmental, Social and Governance (ESG) improvements.
Its trading performance is expected to impress again. Analysts expect sales to jump 39 per cent to £1.7billion, boosting earnings to £147.3m.
City watchers will want to hear about the integration of new brands into its website and logistics platform, and its plans to use the Debenhams acquisition to launch into beauty, sport and homeware.