Short Selling

BOOHOO GROUP is a new Shorting favorite amongst 9 Managers

The number of Hedge Funds shorting British Fashion Retail company rose from April to July 2022

Boohoo Group plc is a British online fashion retailer, which has a portfolio of 13 brands, targeting ages 16 - 30 years old. It is publicly listed on the London Stock Exchange with a market capitalization of £760.704 million as of 19th July 2022.

On 4th April 2022, of the 1.267 billion outstanding shares, approximately 5.43% or 68.835 million shares were shorted, coming to a net of approximately £68.023 million. The shares were shorted by 4 managers: MARSHALL WACE LLP, CITADEL ADVISORS LLC, GLG PARTNERS and ENNISMORE FUND MANAGEMENT LIMITED.

On 15th July 2022, of the 1.267 billion outstanding shares, approximately 7.6% or 96.356 million shares were shorted, coming to a net of approximately £55.828 million. The shares were shorted by 10 different managers.

Among these, MARBLE BAR ASSET MANAGEMENT LLP shorted the highest percentage of 1.8% of the total shares outstanding. The shorted shares rose by 40% from the start of the quarter with share price declining by 41% from the closing price of £0.9882 as of 4th April 2022.

Based on the fundamental analysis, the company has been performing poorly in the previous quarter ending on 31st May 2022. The company’s growth was heavily affected by the soaring inflation, rising interest rates, cost of living crisis and consumers’ return to brick, and mortar shops. The revenue for the company decreased in the recent quarter by approximately 8% to £445.7 million as the company was normalizing its returns from the previous year when the lockdown was in effect.

According to the latest news regarding the company on 13 July 2022, Boohoo has started charging shoppers £1.99 per parcel for return. Only premier customers have the option to have free returns while they do not offer the exchange facility.

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