Boohoo’s share price down as co-founders cash in
Move follows a buoyant 2019 for the online retailer
Online retailer Boohoo’s stock is down around 5% in early trading on Thursday following the news that its co-founders have sold £142.5m ($187.1m, €168.7m) of their shares in the company.
The news comes days after an unscheduled trading update in which Boohoo told the market it had enjoyed a record Black Friday performance.
Co-founder and executive director Carol Kane sold a third of her stake in the fashion brand, 15 million shares, for 285p each, while co-founder and executive chairman Mahmud Kamani sold 35 million shares at the same price. Between them the pair still own a 15.8 per cent stake in the company
At the time of writing, mid morning GMT on Thursday, Boohoo’s shares were selling for 282p each. However, thanks to a strong performance they are still up over 80% in the year marking Boohoo as one of the star performers in the online retail sector,
The company is reportedly focusing on building its overseas presence as well as growing its range of products. International sales now comprise 44 per cent of its total revenue.
The company has also recently been aggressively acquiring new brands including PrettyLittleThings and NastyGal. As part of its Black Friday announcement the company suggested that its debut ranges for Karen Millen and Coast, whose online business and IP rights were bought by Boohoo in the autumn, have been “very well received”.
Boohoo still has plenty of potential for growth. According to Statista spend on apparel and shoes in the UK in 2018 was £58.4m ($76.7m, €69.2) of which around a sixth was spent online.
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