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boohoo group Plc (GB:BOO)
LSE:BOO

boohoo group Plc (BOO) AI Stock Analysis

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boohoo group Plc

(LSE:BOO)

Rating:48Neutral
Price Target:
The stock score reflects significant financial challenges, including declining revenues and cash flow issues, which are major concerns. However, recent corporate events signal potential strategic improvements, and insider confidence provides some encouragement. Technical indicators suggest bearish momentum, while valuation remains unattractive due to recent losses.
Positive Factors
Financial Performance
H2 EBITDA is expected to be stronger than H1, indicating potential improvement.
Financial Strategy
The refinancing with a new £225m facility reduces the overall interest payable by the group.
Leadership
The appointment of Dan Finley as CEO is seen as positive, given his successful track record in rapidly building Debenhams' business.
Negative Factors
Earnings
H1 revenue declined by 15% and H1 EBITDA margin was 3.4%, which is below current estimates.
Sales Performance
Core brands are facing ongoing declines in sales and profitability, limiting the potential for share price growth.
Youth Brands
Youth Brands, which make up over 80% of group revenue, are struggling due to over-investment in staff, stock, and infrastructure, leading to negative impacts on volumes.

boohoo group Plc (BOO) vs. iShares MSCI United Kingdom ETF (EWC)

boohoo group Plc Business Overview & Revenue Model

Company DescriptionBoohoo Group Plc (BOO) is a leading British online fashion retailer known for its fast fashion clothing and accessories. The company operates in the e-commerce sector, providing a wide range of affordable and trendy fashion items primarily targeted at young adults. Boohoo's core products include men's and women's clothing, footwear, and accessories, with a focus on delivering the latest fashion trends quickly and affordably to its global customer base.
How the Company Makes MoneyBoohoo Group Plc makes money primarily through direct-to-consumer online sales of fashion products. The company's revenue model is centered around its e-commerce platform, where it leverages digital marketing strategies to drive traffic and sales. Key revenue streams include the sale of its own branded merchandise, as well as products from various subsidiary brands it has acquired over the years, such as PrettyLittleThing, Nasty Gal, and MissPap. Boohoo's ability to rapidly design, produce, and distribute new fashion collections allows it to capitalize on current trends, boosting sales and customer engagement. The company also benefits from economies of scale and efficient supply chain management, which help to maintain competitive pricing while maximizing profit margins.

boohoo group Plc Financial Statement Overview

Summary
Income Statement
Balance Sheet
Cash Flow
Breakdown
Mar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
1.46B1.77B1.98B1.75B1.23B
Gross Profit
756.10M895.20M1.04B945.20M666.30M
EBIT
-146.90M-82.20M9.40M124.10M90.90M
EBITDA
-53.70M-10.80M63.20M154.80M117.30M
Net Income Common Stockholders
-137.80M-75.60M-4.00M90.70M63.70M
Balance SheetCash, Cash Equivalents and Short-Term Investments
230.00M330.90M101.30M276.00M245.40M
Total Assets
1.08B1.23B998.40M775.90M569.50M
Total Debt
446.90M463.60M151.90M18.30M21.00M
Net Debt
216.90M132.70M50.60M-257.70M-224.40M
Total Liabilities
795.70M825.70M534.10M303.40M241.60M
Stockholders Equity
279.70M400.00M464.30M472.50M310.60M
Cash FlowFree Cash Flow
-62.90M45.50M-251.20M40.10M70.10M
Operating Cash Flow
1.90M136.70M10.30M162.80M115.70M
Investing Cash Flow
-54.80M-103.30M-261.50M-283.40M-43.80M
Financing Cash Flow
-48.00M196.20M76.50M151.20M-24.30M

boohoo group Plc Technical Analysis

Technical Analysis Sentiment
Negative
Last Price26.00
Price Trends
50DMA
26.93
Negative
100DMA
29.50
Negative
200DMA
30.15
Negative
Market Momentum
MACD
-0.41
Negative
RSI
41.06
Neutral
STOCH
48.84
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:BOO, the sentiment is Negative. The current price of 26 is above the 20-day moving average (MA) of 25.58, below the 50-day MA of 26.93, and below the 200-day MA of 30.15, indicating a bearish trend. The MACD of -0.41 indicates Negative momentum. The RSI at 41.06 is Neutral, neither overbought nor oversold. The STOCH value of 48.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:BOO.

boohoo group Plc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBJD
77
Outperform
£3.89B8.0118.22%1.76%2.85%61.98%
GBNXT
76
Outperform
£14.90B20.7746.76%1.17%11.42%-7.03%
GBMKS
71
Outperform
£7.54B25.6010.25%1.39%6.87%22.36%
69
Neutral
£2.93B9.9916.46%-6.82%-37.46%
62
Neutral
$6.82B11.052.80%4.32%2.67%-24.92%
GBASC
55
Neutral
£366.99M-62.59%-15.86%-18.46%
GBBOO
48
Neutral
$337.00M-96.36%-16.32%-202.39%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:BOO
boohoo group Plc
22.05
-11.91
-35.07%
GB:MKS
Marks and Spencer
374.30
81.18
27.70%
GB:NXT
Next plc
12,770.00
3,936.62
44.57%
GB:JD
JD Sports Fashion
76.08
-43.09
-36.16%
GB:FRAS
Frasers Group
705.50
-150.00
-17.53%
GB:ASC
ASOS plc
307.50
-48.70
-13.67%

boohoo group Plc Corporate Events

Shareholder MeetingsBusiness Operations and Strategy
Boohoo Group Rebrands to Debenhams Despite Shareholder Vote
Neutral
Mar 28, 2025

Boohoo group plc announced the outcome of its General Meeting, where the proposal to change the corporate name to Debenhams Group plc was not passed. Despite this, the company will continue to operate under the Debenhams brand, with a new stock market identifier ‘DEBS’ effective from March 31, 2025. The board expressed satisfaction with the majority shareholder support and remains optimistic about the company’s future, emphasizing the successful turnaround of Debenhams as a model for the broader group’s strategy.

Executive/Board ChangesBusiness Operations and Strategy
boohoo Group Rebrands as Debenhams Group Following Successful Turnaround
Positive
Mar 11, 2025

boohoo group Plc has successfully completed the turnaround of Debenhams, transforming it into a profitable and rapidly growing online department store. The company will now operate as Debenhams Group, focusing on a marketplace-led business model to enhance growth and profitability. This strategic shift is expected to drive the recovery of the wider group, including its youth brands, and strengthen its position in the global digital retail space. The group has also announced a new ESG strategy and leadership changes, including the appointment of Phil Ellis as the new CFO.

Business Operations and Strategy
Frasers Group Increases Stake in Boohoo Group
Neutral
Mar 5, 2025

Frasers Group Plc has increased its stake in Boohoo Group PLC, raising its voting rights from 28.008079% to 29.053700%. This acquisition of voting rights indicates a strategic move by Frasers Group to strengthen its influence within Boohoo, potentially impacting the company’s strategic decisions and market positioning.

Executive/Board ChangesBusiness Operations and Strategy
boohoo Group Grants Shares to Executives and Directors
Neutral
Feb 3, 2025

boohoo group plc announced the grant of options over 8,293,104 ordinary shares to its top executives, Dan Finley and Stephen Morana, as part of their compensation and appointment agreements. Additionally, the company issued 275,864 shares to its non-executive directors as part of their compensation package. These actions are part of boohoo’s strategy to align management incentives with company performance, enhancing its operational and strategic positioning. The issuance of new shares will not dilute existing shareholders’ interests, maintaining the company’s focus on sustainable growth.

Other
boohoo Co-Founder Increases Stake with Share Purchase
Positive
Jan 22, 2025

Carol Kane, Co-Founder and Executive Director of boohoo group plc, has purchased 330,295 ordinary shares, increasing her stake to approximately 1.50% of the company’s issued share capital. This transaction reflects insider confidence and may influence shareholder perspectives on the company’s stability and future prospects.

Executive/Board ChangesShareholder Meetings
Boohoo Shareholders Reject Frasers’ Proposal to Remove Director
Positive
Jan 21, 2025

Boohoo Group plc announced that shareholders overwhelmingly rejected the proposal by Frasers Group plc to remove Mahmud Kamani as a director. With over 63% of votes against the resolution, the Board emphasized its commitment to creating shareholder value and urged Frasers to cease its destabilizing efforts. The outcome reflects strong support from shareholders, aligning with a previous rejection of Frasers’ attempts in December, reinforcing the Board’s mandate to focus on maximizing shareholder value.

Glass Lewis Advises Against Removing Mahmud Kamani from Boohoo’s Board
Jan 15, 2025

Boohoo group plc faces a recommendation from independent proxy adviser Glass Lewis for shareholders to vote against a resolution to remove Mahmud Kamani as a director at the upcoming General Meeting. Glass Lewis acknowledges the company’s recent strategic actions, including a business review and leadership changes, which they believe will retain Kamani’s expertise while empowering new leadership to enhance performance. The recommendation aligns with the company’s Independent Committee and Institutional Shareholder Services Inc., indicating significant support for the current leadership strategy.

boohoo Board Urges Rejection of Frasers’ Resolution
Jan 9, 2025

The Independent Committee of boohoo group plc is urging shareholders to vote against the resolution proposed by Frasers Group plc at the upcoming General Meeting, which seeks to remove Mahmud Kamani as a director. This recommendation is supported by Institutional Shareholder Services Inc. (ISS) and stems from concerns that Frasers’ actions aim to destabilize boohoo’s operations for its own commercial gain. The committee highlights the strategic steps taken by the board to enhance shareholder value, such as appointing Dan Finley as CEO, implementing cost savings, and raising equity capital.

boohoo’s Co-Founder Increases Shareholding, Signaling Confidence
Jan 8, 2025

boohoo group plc announced that Carol Kane, Co-Founder and Executive Director, has purchased 320,943 ordinary shares at a price of 31.08 pence per share, increasing her beneficial interest to approximately 1.47% of the company’s issued share capital. This transaction could signify confidence in the company’s future prospects and may influence the perception of stakeholders regarding the company’s market position and leadership stability.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.