Boohoo share price is up by more than 2% day as investors react to the new lockdowns in the United Kingdom. The shares have fallen by more than 3% from last week’s high of 352p.
What happened: Boohoo is one of the fastest-growing clothing company in the United Kingdom. It specializes in online shopping, where it owns brands like Nasty Gal, Karen Millen, PrettyLittleThing, and BoohooMAN.
Boohoo has been in the spotlight recently after allegations of the poor working conditions of its contractors. This led the share price to drop as the company launched an investigation into the allegations. In all, the company has hired a new auditor and committed to improving its processes.
Boohoo growth: Boohoo has been a growth machine over the years. For example, its earnings per share in 2015 was 1.1p. In the same period in 2019, the performance had soared to 6.02p. Subsequently, the Boohoo share price has jumped by more than 672% in the past five years. That makes it one of the best performers in the country. This growth has happened as more people have shifted to fast-fashion.
In its most recent report, the company said that its sales remained steady in the first six months to August. Total revenue rose by 45% to £816 million while its net profit increased by 51% to £68.1 million. And analysts expect the performance to continue due to the recent holiday shopping. It also sold shares worth more than 198 million pounds to acquire other companies.
On the daily chart, we see that Boohoo share price has been on an overall bullish trend. It is slightly below the 23.6% Fibonacci retracement level and above the 50-day and 100-day exponential moving averages. It has also formed a bullish flag pattern, which means that the stock will possibly continue rising as bulls aim for the next resistance at 400p, which is a 15% increase from the current level.
