Boo For Boohoo

March 16, 2022

Online fashion retailer Boohoo's stock is in something of a rut...

Its London-listed shares are down more than 70% in the last 12 months, and despite a move higher last week (as a result of the company's sales growth meeting expectations), investors still seem unsure.

The company’s shares have recently been impacted by a slowdown in sales growth and supply chain challenges.

But while the latest update from the company may have alleviated some fears, unfortunately, this article may only strengthen the current bear thesis, with LikeFolio Consumer Demand data for Boohoo showing a continued decline.

Purchase Intent Mentions for the company are trending down, -40% QoQ and -37% YoY.

Boohoo shares hit their high point during the pandemic in June 2020, coinciding with a jump in Purchase Intent, as you can see in the chart above.

However, since then, the share price and Consumer Demand continues to fall.

Moreover, Consumer Demand is now at its lowest point in approximately six years, back when its shares traded around the 43.76p mark.

In addition, Overall Mentions are on the slide too, on track to finish 22Q1 at -27% QoQ and -43% YoY.

You may think this is an overall decline in fashion talk, but you'd be wrong. Mentions of Fashion Trends are up +14% QoQ and +24% YoY, suggesting it is a demand problem purely at Boohoo.

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