Boohoo revenue warning takes shares down to 2015 levels

Both revenue and EBITDA were down in H1 and the environment is not favouring the business just yet. The board says it’s moving towards its new strategy, but at the moment things are still tough. Shares have hit levels not seen in eight years.

Boohoo sales in the UK

The online clothing store Boohoo has given a warning that its sales for the rest of the year may not be good. In the first half of the year, the company's sales dropped by 17% to £729.1 million. Sales in the UK went down by 19% and international sales went down by 15%. The company's profits also dropped by 12% to £31.3 million. Even though there was a small positive note where the profit margin increased by a bit, it was overshadowed by other bad news.

For example, the debt of the company increased from £10.4 million to £35 million. However, they did manage to reduce their inventory by £94 million, which could be seen as a good thing. But overall, they are expecting even worse sales for the rest of the year.

Boohoo stock price

As soon as this bad news was made public, the stock price of the company dropped by as much as 10% in early trading. Within 25 minutes, the stock price had reached 29 pence, which was the lowest it has been since October 2015. There have been worries about Boohoo's future, and this news has only made the situation worse. As a result, many investors decided to sell their shares, which caused the stock price to drop even more.

Boohoo financial results

In conclusion, Boohoo's warning about its sales, along with the disappointing financial results, caused the stock price to decline significantly. While there were a few positive things, like an increase in profit margin and a decrease in inventory, the overall outlook for the rest of the year is uncertain. Because of these concerns, investors have been selling off their shares, which has led to a negative story for Boohoo's stock.