🧥 Boohoo’s Stock Struggles
Boohoo, which owns brands like PrettyLittleThing, Karen Millen, and Debenhams, has seen a major drop in its stock price—down 85% over five years. Shareholders are pressuring Boohoo to break up the business and sell off non-core brands. According to The Times, divesting brands like Debenhams and Karen Millen might boost shareholder value, as they remain strong performers. Meanwhile, Boohoo's core labels—Boohoo, BoohooMan, and PrettyLittleThing—are losing ground to competitors like Shein, which has better agility and pricing. Chloe Collins of GlobalData suggests that narrowing its focus could help the company recover.
👗 Pressure to Streamline Operations
Boohoo's current portfolio is broad, making it hard to manage all the brands effectively. Collins believes the company should focus on its key brands, founded by the Kamani family, rather than the brands acquired in recent years. "It would make more sense for it to offload those it has acquired," she says. Selling Debenhams and Karen Millen could help Boohoo return to its roots and streamline its operations. These brands have struggled as online-only ventures after their store closures, failing to regain the appeal they had on the high street.
🛒 Declining Market Share
Boohoo has seen its share of the UK apparel market fall to 1.66%—its lowest since the pandemic—despite expanding its portfolio. In contrast, its market share was 2.52% in 2021. Its revenue also dropped 17% in FY24, contributing to its financial woes. The rise of fast-fashion giant Shein has heavily impacted Boohoo's key brands, especially in terms of trend, speed, and pricing. Boohoo decided not to pay its directors $1.27M in bonuses due to the company's poor performance, another sign of internal financial strain.
🎄 Waiting for the Holidays
Although Boohoo is weighing a potential business split, the company is reportedly waiting until after the Christmas trading period before making any final decisions. Christmas is the peak period for retailers, and any strategy would depend on the company’s performance during this crucial time. Sources say co-founders Mahmud Kamani and Carol Kane are listening to investors' concerns but haven’t yet decided whether to proceed with the break-up. Boohoo has declined to comment on any speculation about the future.
Should Boohoo break up to refocus on its core brands?
