Boohoo aims to reassure investors after shares fall
ONLINE fashion retailer Boohoo has moved to reassure nervous investors after a profits warning from larger rival ASOS prompted a 12% fall in its share price.
The Manchester company which floated on the AIM market at 50p per share in February has seen its value fall sharply since a dazzling debut as a public company – shares hit 80p on the first day of trading.
It said in a brief statement on Thursday afternoon: “boohoo.com notes the weakness in its share price today.
“The company can confirm that it continues to trade in line with expectations for the full year to February 2015. Further detail in this regard will follow within the company’s preliminary results and Q1 trading update announcement on 12 June.”
Earlier shares in ASOS plunged by 30% after it sounded a second profit warning in three months.
The retailer blamed the strength of the pound, which hurt overseas sales and forced it to launch a series of promotions. Its international revenues in the three months to the end of May grew by just 17%, against 48% a year earlier.
The firm also cut its forecast on profit margins to 4.5% from 6.5% on a sales target of £1bn for the current financial year. This would imply a fall in profits to £45m from a previous forecast of £65m.
