Boohoo (BOO) Share Price (2024)

Posted at 17/4/2024 09:20 by Boohoo Daily Update

Post lockdown, the rising popularity of fashion retailers SHEIN and TEMU, means BOOHOO simply cannot compete on price.

It is also becoming increasingly clear that consumers are favouring hybrid companies such as H&M and ZARA over online only retailers like BOOHOO on account of their physical presence.

Intriguingly, changes in consumer values are also affecting BOOHOO and the rise of second-hand and pre-loved clothing retailers such as VINTED and DEPOP is gaining momentum and thus poses another massive challenge.

And of course, we cannot ignore the huge elephant in the room – the rising cost of living.

For most younger people, and particularly the targeted "20-somethings" demographic of BOOHOO PLC, funds are dwindling. Financial strain means it is increasingly difficult to splash the cash on new casual wear whilst struggling to afford the basics of housing, food and energy costs.

Ultimately, the survival of BOOHOO PLC hangs in the balance and despite the misplaced optimism of BOOHOO Chief Executive, John Lyttle, there are multiple hurdles that BOOHOO must first conquer in order to survive.

Author James Beard

Final thoughts

Based on its earnings potential, Boohoo shares appear overvalued to me. I know share prices are supposed to reflect future earnings. But how many years will investors have to wait for the company to make the level of profit needed to justify its current stock market valuation?

It’s a similar story when it comes to looking at its balance sheet. At 31 August 2023, its net assets were £380m. That’s approximately 18% lower than its market cap. If all the company’s assets were sold for their book value, and the proceeds used to clear its liabilities, there wouldn’t be enough cash left over to give the shareholders the current value of their holdings.

That’s why if I did have a stake in boohoo, I’d be sobbing uncontrollably.

95.27% of all Boohoo's shareholders (including Frasers Group) have lost money or are currently losing money on their Boohoo shares.

Investors should consider whether they fully understand the financial risks associated with Boohoo PLC, and the Kamani family's involvement in the business, factoring in the high probability of them, losing YOUR money !!!

Over 5 years, Boohoo sharesholders have lost 81.23% of their capital

Over 3 years, Boohoo shareholders have lost 89.27% of their capital

Over 1 year, Boohoo shareholders have lost 34.47% of their capital

Post lockdown, the rising popularity of fashion retailers SHEIN and TEMU, means BOOHOO simply cannot compete on price.

It is also becoming increasingly clear that consumers are favouring hybrid companies such as H&M and ZARA over online only retailers like BOOHOO on account of their physical presence.

Intriguingly, changes in consumer values are also affecting BOOHOO and the rise of second-hand and pre-loved clothing retailers such as VINTED is gaining momentum and thus poses another massive challenge.

And of course, we cannot ignore the huge elephant in the room – the rising cost of living.

For most younger people, and particularly the targeted "20-somethings" demographic of BOOHOO PLC, funds are dwindling. Financial strain means it is increasingly difficult to splash the cash on new casual wear whilst struggling to afford the basics of housing, food and energy costs.

Ultimately, the survival of BOOHOO PLC hangs in the balance and despite the misplaced optimism of BOOHOO Chief Executive, John Lyttle, there are multiple hurdles that BOOHOO must first conquer in order to survive.

Post lockdown, the rising popularity of fashion retailers SHEIN and TEMU, means BOOHOO simply cannot compete on price.

It is also becoming increasingly clear that consumers are favouring hybrid companies such as H&M and ZARA over online only retailers like BOOHOO on account of their physical presence.

Intriguingly, changes in consumer values are also affecting BOOHOO and the rise of second-hand and pre-loved clothing retailers such as VINTED is gaining momentum and thus poses another massive challenge.

And of course, we cannot ignore the huge elephant in the room – the rising cost of living.

For most younger people, and particularly the targeted "20-somethings" demographic of BOOHOO PLC, funds are dwindling. Financial strain means it is increasingly difficult to splash the cash on new casual wear whilst struggling to afford the basics of housing, food and energy costs.

Ultimately, the survival of BOOHOO PLC hangs in the balance and despite the misplaced optimism of BOOHOO Chief Executive, John Lyttle, there are multiple hurdles that BOOHOO must first conquer in order to survive.

BOOHOO SALES COLLAPSE AS DEMAND FOR PRE-LOVED & SECOND HAND CLOTHING INCREASES
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Loss making clothing retailer Boohoo PLC has experienced a huge drop in sales over the past year, with price comparison website, Choosewisely.co.uk says is due to the cost of living increasing.

Boohoo's brands which include PrettyLittleThing and Nasty Gal, recently warned that its Full Year revenue will be below market expectations.

In the last four months of 2023, when the sales should have soared during the run up to Christmas, the company warned sales fell sharply due to delivery disruption and consumers spending less.

However, one area of fashion seems to be booming amid the cost-of-living crisis.

Tara Flynn, personal finance expert and co-founder of comparison site, Choosewisely.co.uk, said:

"Consumers are experiencing price rises everywhere they turn, but wages aren’t keeping pace. With most shoppers being forced to reconsider purchasing non-essential items of clothing.

“Last month, charity shops and second-hand clothing websites saw a huge rise in demand for pre-worn party clothes - a trend likely to continue amongst cash strapped 16 - 25 year olds.

"Buying second-hand clothes is becoming the norm as consumers seek a more sustainable lifestyle.”

Loss making clothing retailer Boohoo PLC has experienced a huge drop in sales over the past year, with price comparison website, Choosewisely.co.uk says is due to the cost of living increasing.

Boohoo's brands which include PrettyLittleThing and Nasty Gal, recently warned that its Full Year revenue will be below market expectations.

In the last four months of 2023, when the sales should have soared during the run up to Christmas, the company warned sales fell sharply due to delivery disruption and consumers spending less.

However, one area of fashion seems to be booming amid the cost-of-living crisis.

Tara Flynn, personal finance expert and co-founder of comparison site, Choosewisely.co.uk, said:

"Consumers are experiencing price rises everywhere they turn, but wages aren’t keeping pace. With most shoppers being forced to reconsider purchasing non-essential items of clothing.

“Last month, charity shops and second-hand clothing websites saw a huge rise in demand for pre-worn party clothes - a trend likely to continue amongst cash strapped 16 - 25 year olds.

"Buying second-hand clothes is becoming the norm as consumers seek a more sustainable lifestyle.”