Boohoo Share Price

Sally57

I hold around 20K in Boohoo but the share price has tumbled recently. Does anybody know why?

milton1970

Maybe read today’s results … pretty clear why they have dropped today ..

Albermarle

From Google 

Profits at Boohoo have slumped by two thirds as the online fashion retailer recorded a steep increase in logistic costs and the bill for its recent acquisition spree.

MaxiRobriguez

Down today for specific reasons that as Milton said you can read in today's results.

Over the past few months the commentary has been a mix of:
1) Competition from even cheaper players like Shein
2) Ongoing fall out from the supply chain PR disaster
3) Potential added costs of rectifying that PR disaster
4) Pandemic easing and people shopping in stores rather than online.
5) Question marks over the expansion policy and picking up "old" brands

I too have a sizable holding in Boohoo. Not quite £20k, but enough for today's drop to be a tough one to swallow.

I'm debating a top up, I don't think the 10% fall today, especially on the back of the wider drops over the last few months, is warranted. 

sevenhills

Hargreaves Lansdown has the PE ratio as 28.8 where as Google states it is 31.52

Sally57

MaxiRobriguez said:

Down today for specific reasons that as Milton said you can read in today's results.

Over the past few months the commentary has been a mix of:
1) Competition from even cheaper players like Shein
2) Ongoing fall out from the supply chain PR disaster
3) Potential added costs of rectifying that PR disaster
4) Pandemic easing and people shopping in stores rather than online.
5) Question marks over the expansion policy and picking up "old" brands

I too have a sizable holding in Boohoo. Not quite £20k, but enough for today's drop to be a tough one to swallow.

I'm debating a top up, I don't think the 10% fall today, especially on the back of the wider drops over the last few months, is warranted. 

I’m also considering a top up at this price because as you mentioned the wider drops over the last few months has already been built in to the share price so I agree 10% fall today is a bit overdone.

Thrugelmir

sevenhills said:

Hargreaves Lansdown has the PE ratio as 28.8 where as Google states it is 31.52

Depends on what is included in the calculation. As published company accounts are prone to presentation bias. 

sevenhills

Thrugelmir said:

Depends on what is included in the calculation. As published company accounts are prone to presentation bias. 

I have bought at 228, nice to get in on a 10% drop

tebbins

It is/has been a small, consumer discretionary company relying on its fast fashion staying in fashion and listed on AIM = very high risk. 

MaxiRobriguez

sevenhills said:

Thrugelmir said:

Depends on what is included in the calculation. As published company accounts are prone to presentation bias. 

I have bought at 228, nice to get in on a 10% drop

I've added 10% to my pre-existing holding at a 224 price. I was tempted to put more in, but Boohoo was already one of my top holdings and I'm not comfortable with allocating even more to it. I'm not a big enough fan for it to dominate my portfolio. 

Thrugelmir

tebbins said:

It is/has been a small, consumer discretionary company relying on its fast fashion staying in fashion and listed on AIM = very high risk. 

With a market capitlisation of £2.5 bn. Would sit mid table in the FTSE250. Not all AIM companies are very high risk. Not like the Chinese companies that once frequented this index.