Is boohoo’s margin squeeze a temporary blip?

Investors are running away from boohoo shares. Some are clearly frightened that there is more bad news to come. If its margin squeeze is temporary and can be contained then then this week's sell off could present an opportunity as the shares are arguably not expensive on revised forecasts.

Photo by J Williams on Unsplash

boohoo is a company which divides opinion. To some it is an ambitious and aggressive operator with great potential. To others, it is a business in the murky world of fast fashion which they don’t feel comfortable about.

The company’s publicity in this area has not been great and it has been working hard to reassure people. I think it’s fair to say that there may be some work still to do on this.

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