Boohoo share slip raises dotcom bubble fears

Online fashion group Boohoo.com fell below its 50p float price for the first time today as fears persisted about a dotcom bubble.

The cheap fashion website that targets 16 to 24 year-olds saw shares drop as low as 49p, a fall of 2p, despite reporting annual sales in line with City forecasts.

Boohoo revealed sales rose 62% on the prior year to £109 million and said it expected its underlying earnings to be up more than 200% on last year’s £3.9 million. The group’s full-year results are out on June 12.

Following the float this month, shares in the retailer went as high as 85p but have fallen since.

Fears of a bubble have emerged amid a raft of internet firms listing in London. Online electrical retailer AO World surged 44% on its first day of trading but tumbled back in subsequent days and is now only 9% higher than its 285p float price.

Other recent retail listings have been mixed. Pets at Home is down 2.5% on its 245p offer price, but discount store group Poundland is up 27% since its debut.