Boohoo share price: what to expect from its half-year results
The online fashion retailer saw its share price soar earlier this month after upgrading its full-year guidance, with investors excited for what its half-year results next week which will likely provide more good news.
When is Boohoo’s results date?
Boohoo will unveil its half-year results on September 25.
Boohoo’s results preview: What does the City expect?
Boohoo is one of UK’s top performing stocks, with its strong performance helping its share price climb higher since the online fashion retailer listed back in March 2014.
The company’s low-cost collections remain popular with consumers which has helped it record strong sales growth, with first quarter group revenues up 39% to £253.3 million.
‘An exclusively online presence means the group can stock small quantities of lots of different styles and ramp up marketing and stock for the most popular,’ Hargreaves Lansdowne equity analyst George Salmon said. ‘This 'test and repeat' model means boohoo is ideally placed to keep up with the frantic pace of fast fashion.’
‘An online model also means expansion is easier than a bricks and mortar retailer, which helps boohoo pursue growth at a snappy pace,’ he added.
City analysts certainly agree with Salmon, with Liberum Capital and Peel Hunt both reiterating buy ratings for the stock in September, giving Boohoo a target share price of 320p and 350p respectively.
Boohoo stock soars after boosting full-year guidance
Boohoo upgraded its full-year guidance on Thursday after seeing stronger-than-expected sales growth, with the online fashion retailer expecting sales to increase by between 33% and 38% (against previous guidance of 25% to 30%).
The company anticipates EBITDA margins for the financial year to remain at around 10% - in line with previous guidance - reflecting recent M&A activity over the first-half of the financial year, with it acquiring Miss Pap in March and more recently snapping up Karen Millen and Coast out of administration.
The online fashion retailer also acquired PrettyLittleThing and Nasty Gal in 2017.
Boohoo saw its stock climb as much as 20% on in early-September after upgrading its full-year guidance, with the stock trading at an all-time high of 285p a share.
The online fashion retailer has benefitted from consumers shift to online, with its stock up more than 50% since January and high street rivals becoming attractive targets.
Boohoo’s recent run of form has seen it outpace online rival ASOS in terms of market value after the latter was hit by two consecutive profit warnings. The former boasting a market cap of £3.15 billion compared to its competitor’s £2.30 billion.
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