new-recommended-broker-banner new-recommended-broker-banner

Boohoo Share Price Surges on 51% H1 Profit Growth

Practice Stock Trading
Updated: 30 September 2020

Shares of Boohoo Group PLC (LON: BOO) today surged 3.12% higher after the company released its H1 2020 results indicating that its revenues in the six months ended August 31 rose 45% to £816 million, translating into a pretax profit of £68 million, a 51% gain.

The fast-fashion group that owns the Boohoo brands and Pretty Little Thing warned investors that the boom witnessed during the coronavirus pandemic lockdown period could return to normal in future months.

The company also upped its revenue growth outlook for the current fiscal year ending February 2021 to 28-32%, an increase from the previous figure of 25%.

Boohoo did not comment on the report into the Leicester scandal, which was published on Friday, saying that it had already addressed the matter and outlined the steps it plans to take going forward.

However, the company’s founder billionaire Mahmud Kamani has faced intense scrutiny and pressure to resign due to the scandal.

Investors are also worried that Boohoo’s plans to establish its own UK factory could eat into its profit margins given the higher pay scales in Britain as opposed to other countries.

Boohoo share price

Tradingview chart of Boohoo share price 30092020

Boohoo shares today surged 3.12% to trade at 402.2p having ended Tuesday’s session trading at 390p.

People who read this also read: