Boohoo shares hit eight-year low as it slashes annual forecast
Boohoo said it expects annual profits of between £58m and £70m having previously pencilled in £69m to £78m
Boohoo shares crashed to an eight-year low after it slashed its sales and profits forecasts.
On another grim day for the struggling online fast-fashion industry, the firm said sales in the 12 months to the end of February 2024 could be down as much as 17 per cent on the previous year.
Boohoo also said it expects annual profits of between £58million and £70million having previously pencilled in £69million to £78million. Shares in the group, whose Pretty Little Thing brand has a collaboration with supermodel Naomi Campbell, fell 2.8 per cent, or 0.87p, to 30.71p – a level not seen since 2015.
The stock has fallen 90 per cent since the pandemic online shopping boom. Chief executive John Lyttle insisted ‘our confidence in the medium-term prospects remains unchanged’ .
He added: ‘We see a clear path to improved profitability and getting back to growth.’ However, figures for the first half of the financial year – the six months to the end of August – underlined the scale of the task facing Boohoo.
Revenues fell 17 per cent to £729.1million as it lost 2.2m customers and order numbers fell by 5.1m to 23.2m.
Boohoo is cutting prices to win back cash-strapped shoppers while reducing costs in a battle to revive its flagging fortunes.
Richard Hunter, head of markets at investment platform Interactive Investor, said: ‘Boohoo is swimming against a strong tide and recovery is not likely to become any easier.’