Shore Capital explicitly says they are “nervous on forecasts.”27 Jul 2025 21:25
UK broker says its nervous about quiet BooHoo
Boohoo Group PLC
AIM:BOO
Boohoo Group PLC - UK broker says its nervous about quiet BooHoo
No news is not good news, not when it comes to financial reporting – and, whilst sharing this nugget of insight, that Shore Capital has repeated its ‘hold’ rating on Boohoo Group PLC (AIM:BOO).
Shore Cap analysts said “things have been quiet this year”, questioned whether BooHoo’s reporting was slower than usual in 2025, and described themselves as “nervous on forecasts”.
BooHoo has until the end of August to publish full-year results, and Shore Cap analysts reckon ‘the print is likely to reveal further struggles’.
“The group is in the middle of rebranding and transitioning to a more market-focused model, as well as ensuring the balance sheet is functional, which is the likely reason for delay,” analyst Katie Cousins said in a note.
“However, we cannot ignore the weak March trading update, and lack of improvement across the broader consumer scene.”
Cousins says BooHoo has a lot riding on the Debenhams brand, where she sees potential ‘greenshoots’ and notes that the unit, the remnants of the former high street department store brand, is “providing the blueprint for the wider business” with a focus on a higher-margin ‘marketplace’ model.
It comes against a consumer backdrop that remains volatile, especially in discretionary spending.
Meanwhile, Cousins also points out that the presence of not-so-silent shareholder Frasers, with 29%, continues to loom as a ‘pressure’.
“Mike Ashley has been trying to gain greater control of the Board and input into the running of the business, and we anticipate this pressure will remain,” Cousins commented.
At the same time, the broker notes newswire reports that have suggested talks are taking place for BooHoo to refinance, which, as Cousins points out, was backed up in prior RNS in which the retailer said it continues to review its debt facilities in the ordinary course of business.
Shore Cap moved to ‘Hold’, an upgrade from ‘Sell’, back in April to account for a reset market valuation, following a share price decline earlier this year.
“We see low earnings visibility and are yet to be convinced of the turnaround story,” the analyst added
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