Home Stock Nasty Gal Owner Boohoo Plunges After Rare Cut in Guidance
imageStock Markets1 hour ago (Sep 30, 2021 06:04AM ET)

(C) Reuters.

By Dhirendra Tripathi

Investing.com – Boohoo stock (LON:BOOH) slumped by almost 12% in London Thursday after the U.K.-based fast-fashion company sprang a surprise by revising its annual guidance lower.

The company behind young women-focused brand Nasty Gal is known to set stiff targets for itself and also meet them.

Boohoo blamed pandemic-related challenges and higher shipping and wage costs for its decision.

It now expects full-year sales to grow 20%-25% compared to the 25% growth it so far anticipated. Adjusted EBITDA margins are seen at 9.25% at the midpoint of the guidance range, compared to an earlier estimate of 9.75%.

In the six months ended August 31, Boohoo’s revenue rose 20% on-year to 975.9 million pounds ($1.30 billion). Gross margin eroded by 40 basis points to 54.6% as the company had to spend more on marketing and shipping to overcome pandemic-induced tightness in the freight market.

The company said consumer demand, which improved through August, was keeping its momentum in September as well.

Boohoo’s results compare to 9% growth in third-quarter sales at much-bigger rival H&M (ST:HMb). The Swedish retailing giant benefited from straddling both online and offline platforms. Online sales rose 22%.

H&M said the new autumn collections have been well received and September sales were better than previous year but also warned that it was being held back by supply chain challenges.

Nasty Gal Owner Boohoo Plunges After Rare Cut in Guidance

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.


Nasty Gal Owner Boohoo Plunges After Rare Cut in Guidance



Latest News