Investors hope for stability after busy months for Boohoo

There will perhaps be little actual detail as Boohoo updates shareholders on how it did in the fist quarter, but eyes are likely to be fixed on the online retailer after weeks of turbulent news. Load Error Investors will hope that the company, involved in a controversial buyout and hit by a short-seller’s report, can exert an aura of calm as in its trading update on Wednesday. In March, just before the UK economy shut down, nervous shareholders sent Boohoo’s shares tumbling to only a little over half the value of where they were trading in February. It also warned that the £200 million the firm had raised could be used to buy the stake of Pretty Little Thing that Boohoo did not own from the Umar Kamani, the son of Boohoo’s founder and chairman. Sophie Lund-Yates, an equity analyst at Hargreaves Lansdown said: “Despite seeing sales initially struggle because of lockdown, Boohoo’s April trading was actually up year-on-year. This is no mean feat given the current climate and we’re keen to see if the trend has continued.” “It’s a trading statement so we aren’t likely to get profit or margin detail, but it will be important to look out for any commentary on discounting.