RE: well I said we would get to 320 soon and there would be consolidation14 Oct 2020 23:06
will it rise again, most likely.
will it rise to great sustainable heights, not likely.
some basics:
Brand = their client base will have none, its cheap knock off clobber that is just desire hole filling.
The broader market = boohoo only represents a percentage of fashion buyers, and the segment will limited cash that will be greatly affected by the cash of the markets from Covid and Brexit.
their rivals = have a lot of stock sat in shops and warehouses that they will sell off at cost to avoid losses, as such the market will very soon get flooded with cheap alternatives.
the move of rivals into digital = very easy and cheap compared to a move in physical retail.
the clothing to utility period of fashion = we are in the winter season, the cost to make garments for this season is more expensive and labour intensive, with the market usually having fewer garments compared to the summer season.
Boohoo is not hegemony, they operate in a very competitive segment that has been beaten the past 6 months and will be looking to take whatever business is available.