Boohoo shares hit eight-year low as full-year forecast is cut
Boohoo said it expected an annual profit of between £58 million and £70 million, after previously forecasting between £69 million and £78 million
Boohoo shares plunged to an eight-year low after the company cut its sales and profit forecasts.
In another gloomy day for the struggling online fast fashion industry, the company said sales could fall as much as 17 percent year-on-year in the 12 months to the end of February 2024.
Boohoo also said it expected an annual profit of between £58 million and £70 million, after previously forecasting between £69 million and £78 million. Shares in the group, whose Pretty Little Thing brand has a collaboration with supermodel Naomi Campbell, fell 2.8 percent, or 0.87p, to 30.71p – a level not seen since 2015.
The stock has fallen 90 percent since the pandemic online shopping boom. Chief Executive John Lyttle emphasized: “Our confidence in the medium-term outlook remains unchanged.”
He added: “We see a clear path to improving profitability and returning to growth.” However, the figures for the first half of the financial year – the six months to the end of August – underlined the scale of the task Boohoo faces.
Sales fell 17 percent to £729.1 million as it lost 2.2 million customers and order numbers fell by 5.1 million to 23.2 million.
Boohoo is slashing prices to win back cash-strapped shoppers while cutting costs as it fights to revive its flagging business.
Richard Hunter, head of markets at investment platform Interactive Investor, said: “Boohoo is swimming against the strong current and the recovery is unlikely to get any easier.”