Boohoo Group (BOO)

Sector:

Retailers

Index:

FTSE AIM 100

35.96p
   
  • Change Today:
    -0.040p
  • 52 Week High: 59.50
  • 52 Week Low: 29.32
  • Currency: UK Pounds
  • Shares Issued: 1,268.68m
  • Volume: 3,561,661
  • Market Cap: £456.22m
  • RiskGrade: 206

Shares in Boohoo tumble as pandemic hits profits

By Abigail Townsend

Date: Wednesday 04 May 2022

LONDON (ShareCast) - (Sharecast News) - Fast fashion retailer Boohoo Group reported a sharp decline in annual profits on Wednesday and warned of a difficult year ahead, causing the shares to tumble.
Revenues rose 14% in the year to 28 February, to £1.98bn. But adjusted earnings before interest, tax, depreciation and amortisation fell 28% to £125.1m, while pre-tax profits tumbled 94% to £7.8m.

The online retailer said that despite seeing strong growth in the UK, its largest market, it had been hit by higher-than-expected return rates in the second half, subdued consumer demand during lockdowns and supply chain challenges, including extended delivery times and higher inbound freight costs.

Boohoo added that it expected these pandemic-related external factors to continue into the current year.

Revenue is forecast to be broadly flat in the first half, as higher return rates lead to net sales being down year-on-year in the current quarter, while revenue percentage growth is estimated to be in the low-single digits for the full year. Adjusted EBITDA margins are forecast to come in between 4% and 7%.

As at 1000 GMT, shares in the Aim-listed group were down 14% at 69.16p.

John Lyttle, chief executive, said: "In the year ahead, we are focused on optimising our operations through increasing flexibility within our supply chain, landing key efficiency projects and progressing strategic initiatives such as wholesale and our US distribution centre.

"This will ensure that the group is well-positioned to rebound strongly as pandemic-related headwinds ease."

Matt Britzman, equity analyst at Hargreaves Lansdown, said: "There's no doubt there's demand for Boohoo's products, but persistent shipping challenges mean serving that demand is becoming increasing difficult, especially in overseas growth areas.

"Plans are afoot to build a distribution centre in the US, but it's costly and won't provide an immediate solution. Fast fashion comes with customers willing to flit between brands. If they can't get the latest trends quickly, US customers might move on permanently, adding a layer of risk to this project."

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Boohoo Group Market Data

Currency UK Pounds
Share Price 35.96p
Change Today -0.040p
% Change -0.11 %
52 Week High 59.50
52 Week Low 29.32
Volume 3,561,661
Shares Issued 1,268.68m
Market Cap £456.22m
RiskGrade 206

Boohoo Group Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
35.05% below the market average35.05% below the market average35.05% below the market average35.05% below the market average35.05% below the market average
Sector averageSector averageSector averageSector averageSector average
Price Trend
30.63% below the market average30.63% below the market average30.63% below the market average30.63% below the market average30.63% below the market average
26.83% below the sector average26.83% below the sector average26.83% below the sector average26.83% below the sector average26.83% below the sector average
Income Not Available
Growth
84.12% below the market average84.12% below the market average84.12% below the market average84.12% below the market average84.12% below the market average
55% below the sector average55% below the sector average55% below the sector average55% below the sector average55% below the sector average

What The Brokers Say

Strong Buy 2
Buy 2
Neutral 5
Sell 7
Strong Sell 1
Total 17
neutral
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Boohoo Group Dividends

No dividends found

Trades for 28-Mar-2024

Time Volume / Share Price
16:35 371,604 @ 35.96p
16:35 218 @ 35.96p
16:35 899 @ 35.96p
16:35 778 @ 35.96p
16:35 2,174 @ 35.96p

Boohoo Group Key Personnel

CFO Stephen Morana
CEO John Lyttle

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