Fast-fashion giants seem to be in the spotlight today after some brilliant half-year profits. These two firms have left outdated rivals in the dust, and I believe you should definitely be throwing your money on these stocks.
Primark powers ahead
The first company that is impressing everyone with its half-year profits is , owned by Associated British Foods (LSE: ABF). Primark has generated a growth profit of 25% in this first half of the year. This profit surge has boosted the share price of Associated British Foods by over 1.5% on Wednesday when interim results were announced.
Primark recently opened its largest store yet in Birmingham, which spans an impressive 157,000 square feet! This was met with a very positive reception from shoppers looking to bag a bargain, showing how Primark is still bringing in a lot of footfall. Primark’s store footprint is continuously expanding along with improved margins. I see the company paving the way forward for other fast-fashion retailers.
Associated British Foods is currently sitting around 2,500p at the time of writing this article. The share price is on the rise, so I would snap it up sharpish! ABF and Primark are beating the market in so many ways, love it or hate it, so I think it’s certainly worth the investment.
Boohoo brings strong sales
Another fashion company performing well is Boohoo Group (LSE: BOO). Boohoo differs greatly from Primark in the sense that it operates entirely online whilst Primark sells both online and in-store. In the past year, Boohoo’s profits have climbed a staggering 48% to a pretty nice figure of £856.9m.
Boohoo’s other brands PrettyLittleThing and Nasty Gal have also seen very impressive figures over the past year. PrettyLittleThing saw sales up 107% last year to £374m whilst its smaller brand, Nasty Gal, saw sales grow 96% last year.
All in all, these figures obviously do look very attractive to potential investors and it’s hard to see why you wouldn’t want to invest. Boohoo shares are looking pretty pricey at the moment, being around 242p at the time of writing. This does put me off slightly, but I can only see further growth thanks to the huge level of high-profile celebrity endorsement behind the brand.
Are these fashion brands the way forward?
Primark has been around for what seems like forever, being founded all the way back in 1969 . However, Boohoo is much newer, jumping on the fast-fashion train in 2006. I believe that Primark is the safer bet of the two, as Associated British Foods has a lot more influence in both food and fashion retail. However, Boohoo’s figures are definitely not ones to turn your nose up at. Personally, I would invest in both of them after their amazing growth figures. I can’t wait to watch them continue to grow.