Update shared on05 Sep 2025
Fair value Decreased 12%Analysts have lowered Boohoo Group’s price target from £0.252 to £0.221, citing weak UK consumer demand, structural pressures in UK retail, and concerns that the company’s shift to marketplace and capital-lite models has not shown sufficient progress beyond Debenhams to offset these headwinds.
Analyst Commentary
- Pivot to a capital-lite, marketplace model showing success at Debenhams but not broadly at Boohoo
- Weaker UK consumer demand is impacting revenue outlook
- Structural pressures within the UK retail sector remain
- Ongoing challenges in scaling new business models
- Concerns that positive developments are not sufficient to offset macro headwinds
What's in the News
- Debenhams Group (formerly Boohoo Group) is considering selling its PrettyLittleThing brand as part of a major turnaround strategy.
- The company has achieved approximately £50 million in annual savings and reduced staff headcount by 30% to transform operations.
- CEO Dan Finley emphasized efforts to address prolonged underperformance, focusing on profitability and cash generation for youth brands under new management.
- The company is reviewing the future of its distribution sites in Burnley and the US as part of a "stock-lite" strategy to improve efficiency.
Valuation Changes
Summary of Valuation Changes for boohoo group
- The Consensus Analyst Price Target has significantly fallen from £0.252 to £0.221.
- The Consensus Revenue Growth forecasts for boohoo group has significantly risen from -3.5% per annum to 2.1% per annum.
- The Future P/E for boohoo group has significantly risen from 11.76x to 19.78x.
Disclaimer
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