Shares of Manchester-based online fashion giant Boohoo fell as much as 9% on Wednesday after broker Liberum downgraded the stock to “sell.”
“Boohoo is facing several headwinds; its consumers are under pressure, Shein is a fierce competitor which will only get worse, cost headwinds are real and the need to invest in marketing and service may hold back profit delivery for longer than expected,” the broker said.
Liberum said Boohoo’s net debt position will limit long-term investment, and scupper the firm’s return to pre-Covid growth rates and margins “for quite some time, if ever.”
Reporter: Elizabeth Winter
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