Updates

Boohoo Group - Shore Cap initiate with 345p target

November 2021

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

Really surprising to see fast fashion retailer Boohoo’s share price retrace so much after its H1 results lowered profitability guidance. The lower guidance was mainly due to a shipping cost headwind of £26m compared to two years ago and equivalent to a 2.7% margin impact. As it was, sales for H1 were +20% to £976m and adjusted EBITDA of £85m was 5% lower year-on-year (but up +40% on a two year basis) due to the shipping headwinds as well as investment in its brand platform (£11m) and increased marketing investment above typical levels to support its newly acquired brands (£13m). Adding back those cost headwinds implies EBITDA of £135m in H1. I think this provides a buying opport ...

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Solid State

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Boohoo (September 2023)

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Boohoo (October 2022)

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Boohoo Group - Highly geared to any improvement in commercial flights (June 2022)

Boohoo - Review ahead of FY report on 4 May (May 2022)

Boohoo Group - Enters beauty space with Debenhams acquisition (March 2021)

Boohoo.com - Gain since 42.5p tip now 871% (July 2020)

Boohoo.com - Blistering growth continues (February 2020)

Boohoo.com (September 2019)

Boohoo.com - Gain to date: 680% (July 2017)

Boohoo.com (April 2017)

Boohoo.com - Buys PrettyLittleThing (January 2017)

Boohoo.com - 310% gain since tip in September â€˜15 (November 2016)

Boohoo.com (September 2016)

Boohoo.com - Shares burst to 52 week high (July 2016)

Boohoo.com (June 2016)

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Boohoo.com - Launches mobile app in August (September 2015)

Boohoo.com - Essential investment to hold back H1 profits (September 2014)

With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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