It has been a torrid few years for ( ). Some of the problems have been self-inflicted, but others have been out of the management team’s control. Whatever it boils down to, the fact that the boohoo share price is down so heavily in recent years makes me wonder if (and when) a comeback could happen.
Problems should fade I’m only going to focus on issues that have happened over the past year, as these are the most relevant for a potential investor like myself. showed a loss before tax of £159.9m.
This was higher than the loss of £75.6m from the year before. The CEO commented that this reflected This is true, but both of those factors actually give me confidence in a potential turnaround for the company.
Inflation has fallen rapidly in recent months, and is now back at just 2%. This is the target level for the Bank of England. I know that high inflation is a problem for boohoo, as everything from fabric costs through to wage pressures go up.
But with this now back under control, I don’t think it should be a problem going forward. Weak consumer demand is another temporary factor. The cost-of-living crisis isn’t over, but it’s not as pronounced as it was in 2023.
For example, May GDP for the UK grew by 0.4%, double the estimate from economists. If the economy continues to grow at a faster than expected pace, it should mean that boohoo (and other consumer facing companies) see a demand spike.
Better finances Another factor that should help the share price going forward .