Boohoo share price has been in the limelight for the past few weeks ahead of its interim results. The British online fashion retailer has been on a downward trend since the start of the year, shedding about 69%. The company’s current market capitalization has crashed to about 500 million pounds.
Boohoo Share Price Outlook
Boohoo Group plc has been on a rough road since the beginning of the year. The company’s share price has been under intense pressure as the sun seems to be setting on the fast fashion growth story. The fast fashion sector is being challenged now that delivery is becoming more expensive.
The BOO Stock price has been on a strong sell-off for the past few months as concerns about the company intensify. The UK’s soaring inflation has had all industries, including the fashion industry, take a nosedive. Inflation is likely to continue worsening as the sterling pound hits a record low against the US dollar.
The fast fashion retailer has been recently canceling orders from suppliers amid a sharp slowdown in demand for fast fashion. The company has canceled orders from its clothing suppliers in Leicester and other key suppliers. In an interview, one of the suppliers stated that;
“Boohoo has canceled a load of orders. We are just here to do the fast stuff and when they don’t need it, they just stop it in its tracks.”
The BOO share price will be in the spotlight this week as it reacts to the upcoming interim results scheduled for Wednesday, September 28. Earlier in September, JP Morgan cut earnings estimates for the retail sector as it warned the cost of living crisis for UK consumers has “just begun.” It cut its forecast for Boohoo’s earnings per share by 20.6% for this year and 16.7% for the next.
BOO Share Price Forecast
The daily chart shows that the Boohoo share price has been on a consistent bear run for the past few weeks. It is moving below the 25-day and 50-day exponential moving averages, hinting at a continuous bearish trend. It has moved below the support level at 51.70p.
Therefore, the BOO stock price is expected to continue plunging as the investors target the next key support level at 30p. However, a move above the psychological level at 44p will invalidate this view.