Updates

Boohoo

August 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.

Boohoo has reported a strong Q1 2022 update with group sales up 32% year on year, beating consensus forecasts of +28%. This was driven by strong momentum in key markets such as UK (+50%) and USA (+43%) despite tough prior year comps (Q1 ’21 +45% YOY). Gross margin of 55.0% is slightly ahead of expectations (consensus : 54.7%), albeit down on prior year which had benefited from fewer returns. Guidance is unchanged with FY’22 revenue growth c. 25%, EBITDA margin between 9.5%-10.0% and likely H2 weighting given investment in newly acquired brands (Debenhams etc.) and infrastructure in H1. The pull-back to 305p, which I attribute to sector rotation, means the shares trade on prospective PE o ...

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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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