With e-commerce gaining significant traction amongst younger consumers, Boohoo has had little difficulty in expanding its top line through both organic and acquisitive strategies. However, profit margins have historically been tight due to the cost of product shipping, which in 2022 sent the BOO share price in the wrong direction.
As the popularity of online clothes shopping improves, Boohoo shares could be in an ideal position to capitalise on the opportunity. But investors need to consider the competitive and operational risks this business has to contend with.