BHHOF - Boohoo Group stock plummets after revenue margin guidance slash

Boohoo Group plc (OTCPK:BHOOY) shares drop sharply after the company cut its net sales growth guidance to between 12% and 14% from between 20% and 25%. Adjusted EBITDA margin outlook was also lowered to 6-7% from previous guidance of ~9%. The company cited several reasons for the downgrade. Higher freight and input costs are expected to be temporary, but subdued interest from customers outside the UK and "significantly higher" return rates signify potentially major problems for the company's low-cost business model. Still, CEO John Lyttle remains optimistic. "The Group has gained significant market share during the pandemic," he commented. "The current headwinds are short term and we expect them to soften when pandemic related disruption begins to ease." See which other stocks are seeing major gains or losses with Seeking Alpha's "On the Move" page.

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Boohoo Group stock plummets after revenue, margin guidance slash