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Capital at risk. All investments carry a varying degree of risk and it’s important you understand the nature of these. The value of your investments can go down as well as up and you may get back less than you put in. Where we promote an affiliate partner that provides investment products, our promotion is limited to that of their listed stocks & shares investment platform. We do not promote or encourage any other products such as contract for difference, spread betting or forex. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK. Accurate at the point of publication.
Half-yearly update, 3 October 2023
- H1 2024 revenue to 31 August 2023 at £729 million, down 17% year-on-year
- Adjusted pre-tax loss at £9.1 million over the same period
- Inventory reduced, down £94 million or 35% year-on-year
- Boohoo predicted sales for year to end-February 2024 liable to decline between 12% – 17%
Founded in Manchester in 2006, Boohoo Group plc is a UK-based holding company operating in the global fashion e-commerce market.
Having started as one brand, the company today provides a platform for multiple brands, targeting consumers aged 16 to 40. The company services over 18 million customers globally and generates more than £1.7 billion in sales.
The company designs, sources, markets, and sells clothing, shoes, accessories, and beauty products. Corporate segments include the UK, Rest of Europe, US, and Rest of the World.
Brands within the company include boohoo; boohooMAN.com; Karen Millen; Nasty Gal; PrettyLittleThing; Coast; MissPap; Oasis; Warehouse; Burton London; Wallis; DP; and Debenhams. Here’s what you need to know about buying, and selling, Boohoo stocks and shares.
Why own stocks and shares?
It’s worth investors asking themselves why they want to buy stocks and shares. Are they looking for capital growth, income from dividends or a combination of both? An investor’s investment objectives will determine what type of shares they invest in, whether that’s high-growth technology shares, or more defensive companies with a reliable dividend stream.
Most investors look for sound fundamentals, including a track record of consistent earnings growth, a strong market position or products and services with future growth potential. These should provide a solid platform for future share price growth.
That said, other factors such as takeover rumours can drive up a company’s share price. Investors may also be attracted by recovery plays, with a depressed share price providing the potential for a rebound.
How to buy Boohoo shares
Once an investor has decided which company to invest in, there are several steps to buying shares.
1) Open an account
Whether an investor is a seasoned trader, or new to stock market-based investments, he or she will need to open an account with a regulated brokerage to buy shares in Boohoo.
Stockbroking is a competitive market place and services for DIY investors come in a range of guises – from online investing platforms run by some of the biggest names in financial services, to investment trading apps that work off smartphones and tablets.
Before opening an account, it’s worth investors bearing in mind the need to:
- focus on ultimate financial goals
- be prepared to ride out stock market ups and downs
- aim to keep trading costs to a minimum
- remember that share investing can prompt tax charges, such as when selling, unless investments are held in tax-efficient wrappers such as an Individual Savings Account (ISA).
Before buying any shares, it’s also worth investors asking themselves:
- should I take financial advice?
- am I comfortable with the level of risk in question?
- what’s my investing budget?
- can I afford to lose money?
- do I understand the company in which I’m looking to invest?
- am I protected if my platform provider/adviser goes out of business?
2) Know where Boohoo is traded
The ticker symbol for Boohoo is BOO. The company is listed and traded on the London Stock Exchange which is open for trading from 8am till 4.30pm. Investors should be able to buy Boohoo shares through the majority, if not all, brokerage accounts.
Bear in mind that profits on UK shares, beyond permitted allowances, are subject to Capital Gains Tax, unless they are held in an ISA or self-invested personal pension.
3) Do your research
To find out more about Boohoo, visit the company’s online investor relations page.
It’s also worth comparing Boohoo’s valuation to other comparable companies. One way of doing this is to look at their relative price-earnings ratios (or P/Es) – shares trading on a high P/E have high expectations of substantial future growth.
Another useful research tool is brokers’ 12-month share price forecasts which can be found on financial websites.
4) Decide an investing strategy
People tend to invest in one of two ways: either with a lump sum purchase, or via smaller, steadier amounts over time.
The latter method benefits from a process known as ‘pound cost averaging’, a stock market technique which helps you pay less per share on average over time in falling stock markets. Rather than waiting to build up a lump sum, it also means an investor’s money can be put to use in the market straightaway.
Note that drip-feeding an investment may sacrifice capital growth if the share price is rising and it’s likely investors will also pay more in the way of share-trading fees.
5) Place an order
Investors who are ready to buy Boohoo shares, should log into their investing account or trading app. Type in the BOO ticker along with the number of shares required, or the amount available to invest.
Many brokers allow investors to add a ‘stop loss’ once they have bought shares, which allows them to limit their losses should a share price fall.
6) Review Boohoo’s performance
Whether a share portfolio is crammed full of companies or holds only a handful of stocks, it’s vital that investors review how each component is performing on a regular basis: monthly, quarterly, or annually.
Doing this gives them the opportunity to review performance and consider whether any adjustments to your holdings are required – to maintain the status quo, buy more stock, or sell existing shares.
How to sell Boohoo stock
At some point, investors will want to sell their holdings. To do this, log in to the relevant platform, type in the BOO ticker and select the number of shares to be sold.
Note that where investors have made a substantial profit, there may be a CGT liability to be accounted for. The CGT tax-free allowance for the tax year 2023-24 is £6,000 which reduces to £3,000 in 2024-25.
How to invest in Boohoo via a fund
Investing directly in individual stocks can be an absorbing and, hopefully, profitable experience. It may also qualify investors for shareholder perks specific to the company in question.
Investing directly in companies can, however, leave investors vulnerable to stock market volatility and unforeseen swings in share prices.
That’s why financial experts recommend that most people invest in a diversified mix of asset classes and investment funds that hold a ready-made portfolio of dozens of different company shares. Boohoo is part of the FTSE AIM All Share index and can be found in UK equity and index tracker funds.
Frequently Asked Questions (FAQs)
Does Boohoo pay a dividend?
Dividends are a distribution, usually in cash, generally paid by a company to its shareholder on a periodic basis. Payments are usually met out of that year’s earnings. Companies aren’t obliged to pay a dividend but may choose to do so for a number of reasons: as a gesture of a company’s support to its financial backers, for example, or as an incentive to shareholders to continue owning shares.
Boohoo does not pay a dividend currently.
Can I buy Boohoo shares with a debit card?
Yes, in the sense that you’d need to add funds using a suitable card to an online investing service or app before making the share purchase from there.
What does it cost to trade Boohoo shares?
This will vary depending on the investment service/platform that an investor is using to trade.
Broadly speaking, there are three main types of fee to watch out for. First, is a share trading fee that investors are charged by a platform each time they buy or sell shares. Note that some platforms charge no fee for this activity, while others may levy a flat fee of typically between £5 and £10.
Second, comes the platform fee which is typically charged as an annual fee levied for holding shares on a particular investing platform. Again, some providers impose no fee, others charge a flat fee, and some services charge a percentage, typically 0.25% to 0.45% per annum of the value of the underlying portfolio.
Where investors buy or sell shares denominated in a foreign currency, such as dollars, nearly all of the investing platforms charge a foreign exchange fee. Again, this will vary among providers, but tends to sit in a range from 0.5% to 1.5% per transaction. As a quoted UK company, foreign currency fees will not apply to UK investors buying Boohoo shares.
