“Lockdown has boosted Boohoo’s sales by 44%; disruption to air freight has impacted global growth and governance with a capital G is front and center as the group look to put supply chain issues firmly in its rear-view mirror,” comments Danni Hewson AJ Bell financial analyst. “Boohoo is at pains to point out the number of new hires responsible for maintaining high ethical and sustainability standards. Its commitment to transparency includes publishing a list of its international manufacturers in September and a decision to cut loose a number of UK suppliers which didn’t mesh with the group’s values.
“What investors are waiting for is the commitment from bosses to link these targets with financial reward. Boohoo has confirmed that discussions have been had and further details will be shared in the annual report due out later this month. This is the crucial part of the jigsaw, a tangible link between social responsibility and fiscal reward.
“The businesses existing customers might not have been put off by the businesses supply chain failings, but Boohoo is diversifying. Its integration of brands like Debenhams will require it to attract a new shopper. Price is undeniably important but as retail reopens and competition intensifies the story behind the brand will become ever more important. Splashing out should make customers feel good about their purchases; giving them one more reason to feel the glow has to be excellent for business.”
