Boohoo.Com PLC Leaps As It Bounds Into Germany

Boohoo.Com PLC (LON:BOO) follows in ASOS plc (LON:ASC)’s footsteps.

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Boohoo.com (LSE: BOO), the fast-growing online fashion retailer, saw its shares spike up 4% in early trade this morning following the announcement that it has increased its international presence by launching a German-language website.

Following in rival ASOS‘s (LSE: ASC) footsteps, boohoo.com now has foreign-language sites in France, Spain and Germany, and has added three further currencies — Swedish Krona, Danish Krone and Norwegian Krone — to the existing six currencies already available.

ASOSThe market reacted positively to the news, with international sales accounting for 35% of boohoo.com’s total sales. However, this still pales in comparison to ASOS’s 61%, which comes from sites spanning the US to Australia, Russia to China, as well as further European coverage with Italy.

It’s all about growth with these two: while ASOS was the darling of the AIM for many years, seeing a nigh-on 15-fold rise since its low point in 2010 of 415p, it’s now fallen back down to levels last seen over a year ago.

Boohoo.com has also suffered from market pressures, though; having listed at an offer price of 50p per share back in March 2014, the shares initially jumped 70% to 85p on their debut, but now trades at less than 40p.

If you think that this sector is due a recovery, then both of these shares might well look decent value at today’s prices when offset against their previous highs. However, neither stock pays a dividend currently so you won’t be placated with a trickle of income while you’re waiting for a turnaround, which is something I like in a growth share.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Sam Robson owns shares of ASOS. The Motley Fool owns shares of ASOS.

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