How boohoo has overtaken ASOS

Online fashion retailer boohoo (LON: BOO) has not always been an investor favourite, but in little more than five years it has leapfrogged rival ASOS (LON: ASC) in market capitalisation terms.

The acquisition of the online assets of Karen Millen and Coast for £18.2m has broadened the range of brands owned by boohoo, which is on course to increase pre-tax profit from £76.3m to £93.9m in the year to February 2020.

boohoo is valued at £2.74bn, which compares with £2.03bn for ASOS, which is not much more than one-third of its market capitalisation when boohoo joined AIM. At that time, ASOS was the largest company on AIM and it has fallen to sixth largest, while boohoo is vying for the number one spot.

The company floated in March 2014, when it raised £300m at 50p a share. Less than...

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Andrew Hore is the publisher of AIM Journal, which is an online monthly publication covering the Alternative Investment Market.