boohoo group Plc (DEBS) AI Stock Analysis

• Market Cap: £281.97M
• Dividend Yield: N/A
• Average Volume (3M): 5.71M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.33
• Revenue Growth: -65.42%
• EPS Growth: 27.73%
• Country: UK
• Employees: 3,869
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): >-0.01
• Shares Outstanding: 1,397,498,200
• 10 Day Avg. Volume: 3,818,282
• 30 Day Avg. Volume: 5,712,207
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £14.33
• Price Target Upside: -34.57% Downside
• Rating Consensus: Strong Sell
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: 28.00p ▲(27.85% Upside)

The overall stock score is primarily impacted by the company's poor financial performance and concerning valuation metrics. While technical analysis shows some short-term bullish momentum, the overbought indicators suggest caution. Positive corporate events provide some optimism, but the financial distress remains a significant risk.

Positive Factors

Direct-to-Consumer Model

Boohoo's direct-to-consumer model enhances margin sustainability by reducing costs associated with traditional retail, allowing competitive pricing and better control over customer experience.

Market Adaptability

Boohoo's agility in responding to fashion trends and customer feedback supports its market position and revenue growth, crucial in the fast-paced fashion industry.

Brand Portfolio

A diverse brand portfolio allows Boohoo to target different market segments, enhancing its competitive advantage and market reach in the online fashion retail sector.

Negative Factors

Declining Revenues

Significant revenue decline indicates challenges in maintaining market share and demand, potentially impacting long-term growth and financial stability.

High Leverage

High leverage can strain financial resources, limiting Boohoo's ability to invest in growth opportunities and increasing vulnerability to economic downturns.

Negative Profitability

Negative profitability reflects operational inefficiencies and financial distress, challenging Boohoo's ability to sustain operations and invest in future growth.

boohoo group Plc Business Overview & Revenue Model

Company Description

Debenhams Group PLC, through its subsidiaries, operates as an online clothing retailer in the United Kingdom, rest of Europe, the United States, and internationally. The company designs, sources, markets, and sells fashion clothing, home and beauty products, shoes, and accessories for 16-to-60+ year age customers. It provides its products under the boohoo, boohooMAN, PrettyLittleThing, Nasty Gal, MissPap, Karen Millen, coast, Oasis, Warehouse, Dorothy Perkins, Wallis, Burton London, and Debenhams brands. boohoo group plc was founded in 2006 and is headquartered in Manchester, the United Kingdom.

How the Company Makes Money

Boohoo generates revenue primarily through direct-to-consumer sales via its e-commerce platforms. The company's revenue model is heavily based on online sales, with a significant portion coming from its various branded websites. Key revenue streams include sales from its own branded merchandise, as well as collaborations and partnerships with influencers and celebrities that help to drive traffic and sales. Additionally, Boohoo benefits from a low-cost operating model combined with rapid inventory turnover, which allows it to respond quickly to fashion trends and consumer demands. The company also leverages international markets for expansion, further contributing to its earnings.

boohoo group Plc Financial Statement Overview

Summary

Boohoo Group Plc is facing significant financial challenges, with declining revenues, negative profitability, and increased leverage. The cash flow situation is concerning, with negative operating cash flow and declining free cash flow, indicating financial distress and potential risks for future stability.

Income Statement

The income statement reveals significant challenges for boohoo group Plc. The company has experienced a sharp decline in revenue, with a 45.9% decrease in the most recent year. Gross profit margins have decreased slightly over the years, and net profit margins have turned negative, indicating substantial losses. EBIT and EBITDA margins are also negative, reflecting operational inefficiencies and financial distress.

Balance Sheet

The balance sheet shows a concerning financial position. The debt-to-equity ratio has increased dramatically to 62.33, indicating high leverage and potential solvency issues. Return on equity is negative, highlighting the company's inability to generate profits from shareholders' equity. The equity ratio has also decreased, suggesting a weakened financial structure.

Cash Flow

Cash flow analysis indicates negative trends, with free cash flow growth being negative and operating cash flow turning negative in the latest period. The operating cash flow to net income ratio is negative, reflecting cash flow challenges. However, the free cash flow to net income ratio is positive, suggesting some ability to cover losses with free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	467.40M	790.30M	1.46B	1.77B	1.98B	1.75B
Gross Profit	197.40M	389.70M	756.10M	895.20M	1.04B	945.20M
EBITDA	-58.90M	-184.90M	-53.70M	-10.80M	63.20M	154.80M
Net Income	-202.20M	-326.40M	-137.80M	-75.60M	-4.00M	90.70M
Balance Sheet
Total Assets	469.90M	525.90M	1.08B	1.23B	998.40M	775.90M
Cash, Cash Equivalents and Short-Term Investments	30.40M	44.70M	230.00M	330.90M	101.30M	276.00M
Total Debt	217.20M	243.10M	446.90M	463.60M	151.90M	18.30M
Total Liabilities	469.80M	522.00M	795.70M	825.70M	534.10M	303.40M
Stockholders Equity	100.00K	3.90M	279.70M	400.00M	464.30M	472.50M
Cash Flow
Free Cash Flow	-4.30M	-34.00M	-62.90M	45.50M	-251.20M	40.10M
Operating Cash Flow	-30.00M	-12.70M	1.90M	136.70M	10.30M	162.80M
Investing Cash Flow	42.20M	32.20M	-54.80M	-103.30M	-261.50M	-283.40M
Financing Cash Flow	-111.70M	-202.90M	-48.00M	196.20M	76.50M	151.20M

boohoo group Plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 21.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:DEBS, the sentiment is Positive. The current price of 21.9 is above the 20-day moving average (MA) of 20.85, above the 50-day MA of 15.80, and above the 200-day MA of 18.59, indicating a bullish trend. The MACD of 2.49 indicates Positive momentum. The RSI at 56.30 is Neutral, neither overbought nor oversold. The STOCH value of 6.16 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:DEBS.

boohoo group Plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AO	63 Neutral	£604.43M	51.05	7.52%	―	13.21%	-54.35%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
THG	60 Neutral	£780.11M	-4.45	-18.75%	―	-20.36%	44.33%
MOON	56 Neutral	£622.27M	13.85	―	1.40%	3.94%	―
MRK	53 Neutral	£48.28M	-44.23	-9.68%	2.09%	-5.97%	14.75%
DEBS	46 Neutral	£281.97M	-1.41	-172.24%	―	-65.42%	27.73%
ASC	46 Neutral	£314.73M	-1.07	-81.34%	―	-14.89%	12.08%

boohoo group Plc Corporate Events

Debenhams Group Co-Founders Increase Shareholdings, Signaling Confidence

Boohoo Group Plc, operating as Debenhams Group, announced significant share purchases by its co-founders, Mahmud Kamani and Carol Kane. Kamani acquired 3 million shares, increasing his stake to 12.70% of the company’s issued share capital, while Kane purchased 2 million shares, raising her stake to 2.13%. These transactions reflect confidence in the company’s future prospects and may influence shareholder perceptions and market dynamics. The total number of ordinary shares and voting rights remains unchanged, providing a stable basis for shareholder calculations under regulatory disclosure rules.

Debenhams Group Launches New Incentive Scheme to Drive Turnaround Strategy

Boohoo Group Plc, under its subsidiary Debenhams Group, has introduced a new Group Turnaround Scheme (GTS) aimed at incentivizing its executives and senior management to execute a multi-year turnaround strategy. This initiative comes after a comprehensive review of the company’s remuneration policy, aligning it with the goal of restoring profitability and unlocking shareholder value. The GTS replaces previous incentive schemes and is designed to drive significant share price growth, with a focus on retaining key management figures. The scheme has been structured to deliver substantial market capitalization growth, with specific share price targets over a five-year period. Despite not requiring shareholder approval, the company has consulted with key shareholders, representing 36% of voting rights, to finalize the GTS terms. The initiative is seen as crucial for maintaining the company’s positive trajectory and countering competitive disruptions.

Boohoo Group’s Strategic Transformation Drives Profitability and Growth

Boohoo Group Plc, soon to be renamed Debenhams Plc, reports significant progress in its strategic transformation, returning to profitability across all brands. The company’s marketplace model, which is stock and capital lite, has driven growth, particularly for the Debenhams brand, and is expected to further enhance profitability through AI investments. The company has reduced its fixed costs significantly and aims to strengthen its balance sheet, with expectations of double-digit EBITDA growth in FY27. The transformation is supported by a new leadership team and a focus on a lean, tech-enabled business model, positioning Debenhams Group as a leading online platform.

Debenhams Group to Announce Financial Results for H1 2025

Debenhams Group, a leading online fashion group, announced that it will release its financial results for the six months ending 31 August 2025 on 27 November 2025. This announcement is significant for stakeholders as it provides insights into the company’s financial health and operational performance, potentially impacting its market positioning and investor confidence.

Debenhams Group CFO Increases Stake with Share Purchase

Phil Ellis, Chief Financial Officer of Debenhams Group, has purchased 162,881 ordinary shares in the company, representing approximately 0.01% of its issued share capital. This transaction highlights the confidence of the company’s leadership in its market position and future prospects, potentially impacting investor sentiment positively.

Debenhams Group Directors Increase Shareholdings, Indicating Confidence

Debenhams Group announced that two of its Non-Executive Directors, Iain McDonald and John Goold, have purchased significant amounts of the company’s ordinary shares. McDonald acquired 300,161 shares, while Goold purchased 200,000 shares, signaling confidence in the company’s future prospects. These transactions, conducted on the London Stock Exchange, reflect a positive sentiment from the board members, potentially impacting investor perceptions and the company’s market positioning.

Debenhams Group Strengthens Board with New Appointment

Debenhams Group has announced changes to its Board, appointing Tom Handley as an Independent Non-Executive Director. Handley, with extensive governance expertise, is expected to contribute significantly to the company’s growth. Alistair McGeorge steps down from his role, with John Goold taking over as Senior Independent Director. These changes are seen as strategic moves to bolster the company’s governance and operational capabilities.

Debenhams Group AGM Results: Ordinary Resolutions Passed, Special Resolutions Blocked

Debenhams Group announced the results of its Annual General Meeting, where all ordinary resolutions were passed, but special resolutions failed due to a major competitor’s voting influence. Despite this, the board reassured shareholders that the outcome would not materially impact the company, emphasizing their commitment to the turnaround strategy and shareholder value maximization.

Debenhams Group Corrects AGM Notice Error

Boohoo Group Plc, operating as Debenhams Group, announced a correction to a typographical error found in the notice for their upcoming Annual General Meeting (AGM). The error pertained to the expiration date of certain resolutions, which should extend until September 19, 2026, instead of 2025. This correction does not necessitate a new proxy form, and the amended resolutions will be presented for voting at the AGM. The revised notice will be available on the company’s website, ensuring shareholders are informed of the changes.