Boohoo is moving quickly to protect its business as a supply chain scandal causes e-tailers such as Asos and Zalando to delist its brands. But the firm also said its wholesale ops are small as D2C is its focus.
Shares in online fashion retailers Zalando and Asos jumped on Thursday after the former said it expects a big increase in second-quarter sales and operating profit as lockdowns accelerate a shift to ecommerce.
Boohoo is the new owner of Oasis and warehouse, paying less than £6m for the two brands. It has also reported a robust Q1 with sales surging globally as it switched to athleisure and lockdown-friendly pieces.
Boohoo has shown its strength by raising nearly £200m and it plans to use the cash to buy brands in Europe and the US. But it won't be moving into physical retail so labels it buys should also prepare for store closures.
While the coronavirus crisis is proving devastating for some fashion companies, others such as Boohoo are thriving and the online retail giant could see acquisition opportunities as some brands struggle to survive.
Boohoo has reported impressive full-year results and, perhaps more importantly, delivered a coronavirus update. The e-tail giant said that while it had taken a sales hit during March, sales in April have been rising.