Opinion-in-brief: Boohoo makes a bid for the Land of the Free
Boohoo is a great example of how moral pronouncements don’t always match behaviour.
While shareholders have criticised the workhouse chic of the clothier’s factories, it has not made a dent in consumers’ appetite for fast fashion.
Yesterday’s revenue numbers show that trend isn’t changing, with an almost ten-fold increase in sales and operating profits in five years.
These numbers would normally have fund manages salivating. But even if consumers’ aren’t fussed by Dickensian working conditions, investors are concerned. The company’s share price has not recovered, even after a fresh push at supply chain transparency from the high street giant.
The big appeal now may be stateside. British expansion is known for failing in the US market, but Boohoo does seem to be making it work.