£1K to invest? I’d buy shares in Boohoo Group now

Home   /   £1K to invest? I’d buy shares in Boohoo Group now

first_img I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Image source: Getty Images. The high-calibre small-cap stock flying under the City’s radar Fashion retail is in the doldrums. But one clothing retailer that’s bucking the current trend in its industry is Boohoo Group (LSE:BOO).FTSE AIM starFounded in 2006, the UK-based online retailer has become hugely popular with its target market of 16-30 year-olds. It offers its own-brand fashion clothing and sells over 30,000 products across multiple brands. Boohoo also has a history of buying up failing labels and folding them into its business. Two of these brands include Karen Millen and Coast. 5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…It has used social media platforms very well as part of its marketing strategy with campaigns including celebrity endorsements and celebrity clothing ranges having contributed to its meteoric rise. At the time of writing, Boohoo has 6.5m followers on Instagram, over 500k on Twitter, and 3.3m likes on Facebook. But the biggest part of its success story is making fashion that responds to trends quickly at prices almost anyone can afford.Performance and Covid impactIn the past five years, Boohoo’s share price has increased by over 1,000%. When stock markets crashed, its share price fell nearly 50% from 316p each to 157p. Yet it currently trades at over 350p per share, so has clearly recovered from the market crash.Why the fast bounce-back? At the end of April, Boohoo announced full-year results up to 29 February. Group revenue was up 44% across all its brands. There was strong revenue growth across both UK and international markets. Its free cash flow was up £50m compared to the previous year and stood at £240.7m. And the number of active customers it had was up 28% on the previous year, to 8.9m. Even so, some uncertainty remained. Boohoo said in its announcement that it could not yet provide guidance for the next financial year due to the pandemic. This is understandable. But uncertainty could be Boohoo’s best friend over the long term. Why is that? Acquisition opportunities, that is why. I feel that there will be more casualties in the fashion industry due to this lockdown. Oasis, Warehouse, Laura Ashley and Cath Kidston have already gone into administration. I think there could be others that may present Boohoo with further acquisition opportunities and the company has already raised hundreds of millions of pounds in extra cash to pounce when opportunities arise. Boohoo bucking the trendBoohoo’s target market is also what sets it apart from other clothing retailers. The younger fashion-focused demographic forms the majority of its customer base. These customers are in lockdown but many are still spending. They may be buying more casual clothes rather than party outfits. But they are buying from Boohoo and the firm is profiting. This is great for shareholders and potential investors alike. Yes, Boohoo is expensive by conventional standards, but I feel this is not an issue based on its past performance and further growth potential. Year-on-year revenue and profit growth, plus its ever expanding geographical reach show Boohoo is heading in the right direction.I feel there is more to come in the Boohoo story and would consider it as a long term-growth pick for my own portfolio.  Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Enter Your Email Address £1K to invest? I’d buy shares in Boohoo Group now Jabran Khan | Thursday, 21st May, 2020 | More on: BOO Adventurous investors like you won’t want to miss out on what could be a truly astonishing opportunity…You see, over the past three years, this AIM-listed company has been quietly powering ahead… rewarding its shareholders with generous share price growth thanks to a carefully orchestrated ‘buy and build’ strategy.And with a first-class management team at the helm, a proven, well-executed business model, plus market-leading positions in high-margin, niche products… our analysts believe there’s still plenty more potential growth in the pipeline.Here’s your chance to discover exactly what has got our Motley Fool UK investment team all hot-under-the-collar about this tiny £350+ million enterprise… inside a specially prepared free investment report.But here’s the really exciting part… right now, we believe many UK investors have quite simply never heard of this company before! Our 6 ‘Best Buys Now’ Shares Simply click below to discover how you can take advantage of this. Click below if you want to know more about a top small cap! Jabran Khan has no position in any shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Click here to claim your copy of this special investment report — and we’ll tell you the name of this Top Small-Cap Stock… free of charge! See all posts by Jabran Khanlast_img

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