Control isn’t something that Boohoo’s management has a great deal of at the moment. Shipping costs are rising, stock deliveries are taking longer and shoppers now require more persuasion to part with their cash.
Failure to get a good enough handle on these issues means that revenue growth for this year is expected to slow again and margin guidance has weakened to between 4 per cent and 7 per cent, prompting analysts to cut their profit forecasts.
Investors have little faith that Boohoo will be able to surmount these challenges soon. The company is now the second-most-shorted stock in London, with bets that the share price will fall further ratcheting up to an all-time high. Continued pessimism comes even after a share price decline of
