RE: BOO demanding 30% supplier reductions24 May 2023 08:07
Nonetheless, the main takeaway would be that boohoo generated positive free cash flow of £30m, which is in stark contrast to ASOS’ negative showing of -£263m. Case in point, the retailer beat analysts’ estimates by a huge margin, reporting free cash flow of £30m.
Most importantly, boohoo isn’t in financial trouble like its competitor. The e-commerce group finished its financial year with £6m of net cash rather than the £60m of net debt analysts had projected. Hence, boohoo shares have gotten a thumbs up from the market, especially after management miraculously improved the business’ financial position during a cost-of-living crisis.