The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
LONDON, United Kingdom — Boohoo Group Plc shares fell the most since August after the UK fast-fashion retailer caught up in a labour scandal said it's seeking a new auditor to replace PricewaterhouseCoopers.
The stock dropped as much as 17 percent, and was down 14 percent to 272.20 pence at 8:26 a.m. in London trading.
PwC won’t participate in the tender, Boohoo said Monday, adding that the accounting firm signed off on its 2020 accounts with an unqualified opinion. The announcement comes after the Financial Times reported Sunday that PwC decided to stop auditing Boohoo for reputational reasons, citing unidentified people close to the situation.
“It seems unclear to us which came first, the launch of a competitive tender process by BOO or the indication by PwC of its intention to resign,” analysts at Jefferies said in a note. “Regardless, we see no suggestion of any financial impropriety and would be inclined to view this as short-term noise.”
ADVERTISEMENT
An independent review published last month found that Boohoo ignored warnings about significant labor violations at U.K. garment suppliers. However, it cleared the company of direct involvement in any abuses.
Boohoo raised its full-year forecast on September 30 after reporting strong sales.
By Thomas Mulier.
Designer brands including Gucci and Anya Hindmarch have been left millions of pounds out of pocket and some customers will not get refunds after the online fashion site collapsed owing more than £210m last month.
Antitrust enforcers said Tapestry’s acquisition of Capri would raise prices on handbags and accessories in the affordable luxury sector, harming consumers.
As a push to maximise sales of its popular Samba model starts to weigh on its desirability, the German sportswear giant is betting on other retro sneaker styles to tap surging demand for the 1980s ‘Terrace’ look. But fashion cycles come and go, cautions Andrea Felsted.
The rental platform saw its stock soar last week after predicting it would hit a key profitability metric this year. A new marketing push and more robust inventory are the key to unlocking elusive growth, CEO Jenn Hyman tells BoF.