The stock market has been on a wild ride in recent months, with investors facing several challenges. For THG (LON: THG) and Boohoo (LON: BOO), two of our three stocks to watch this week, the pressure continues to mount…
Meanwhile, Burberry (LON: BRBY) continues to climb without a care in the world.
Here’s what we are looking out for:
THG shares are up 40% in 2023, but that only tells you a fraction of the story…
The troubled business has cratered beyond 90% since floating on the London Stock Exchange over two years ago.
After climbing since April on the news it had received a takeover approach from New York-based firm Apollo Global Management, the stock has given up the gains.
On Friday, THG shut down talks with the private equity firm, resulting in a 15% slide. This week, we will be watching to see if that decline continues.
Boohoo is set to report its preliminary results for the financial year ended February 28 on Tuesday, May 16.
Last week, the online fashion retailer fell 7.1% on Tuesday and more than 12% on Wednesday following rival Asos’ poor release, which saw losses widen and the company report weaker revenue.
Cost of living pressures are taking their toll on consumers and the signs for Boohoo aren’t positive.
Google Trends show searches for the company continue to edge lower, while other brands under its banner, such as PrettyLittle Thing, don’t fare well either.
Furthermore, visits to the Boohoo, BoohooMan, and PrettyLittleThing websites continue to decline according to Semrush.
Luxury fashion brand Burberry will report its preliminary results on Thursday, May 18…
While THG and Boohoo are struggling, Burberry has performed extremely well over the past year, climbing over 67%.
Demand for higher-end fashion brands has remained extremely resilient as consumers in that bracket tend to be less affected by soaring inflation.
As you can see above, visits to the company’s website have been rising consistently for several years, only dropping off in the last few months, while there has been a 12% increase in Google search volume for Burberry in the 12 months to March 2023.
The signs for the historic British brand are very positive…
With the company benefitting from the reopening of the Chinese economy this year, Burberry is expected to report a jump in profits and sales for the year ending in March.
By Sam Boughedda