Is Boohoo on the verge of an Asos-style collapse?
Asos investors have suffered as growth has faltered and the share price has collapsed. Is Boohoo at risk of following its older cousin into the doldrums? Read on to find out our thoughts and read about three retailers we like better than Asos or Boohoo.
Fast fashion has been one of AIM’s great sectors. In the last decade, the falling cost of overseas clothing production and a shift to e-commerce have stimulated extraordinary growth at digital retailers. At different points over the last few years, Asos (LON: ASC) and Boohoo (LON: BOO) have both held the title of the junior market’s largest company. But timing has been crucial for investors who have followed the struggles and success of AIM’s fast-fashion pioneers. Both companies punished early investors badly. Asos shares collapsed from 24p at the 2001 IPO to just over 3p a year later as tech-wary investors hesitated…