• About Us
  • Contact Us
  • Privacy Policy
  • Terms & Conditions
  • Emial Whitelisting
No Result
View All Result
China Secrets Revealed
  • Economy
  • Editor’s Pick
  • Investing
  • News
  • Stock
  • Economy
  • Editor’s Pick
  • Investing
  • News
  • Stock
No Result
View All Result
China Secrets Revealed
No Result
View All Result
Home Investing

Here’s why Asos and Boohoo share prices crashed

by
June 16, 2022
in Investing
0
Here’s why Asos and Boohoo share prices crashed

Boohoo (LON: BOO) share price crashed hard on Thursday after a major warning from Asos. The stock has dropped in the past six consecutive days and is now trading at the lowest level since July 2016. Its market cap has plummeted to about 728 million pounds.

Asos outlook sends shivers

Boohoo is a leading fashion company that sells its products in the UK, US, and other countries. The firm is going through a challenge of its lifetime as business conditions worsen.

The cost of doing business in the fashion industry has jumped. That’s because the price of raw materials like cotton have surged. At the same time, wage costs have accelerated as the labor market has tightened. 

Boohoo is having to pay more for other important components of the economy like fuel. At the same time, the rising inflation has pushed people to change their buying preferences. Instead of buying clothes, many of them are spending on essentials like food and shelter.

All these factors explain why the Boohoo share price is in a freefall. And it is not alone. Asos share price plummeted by more than 16% on Thursday after the company published weak results and guidance. The company said that it was seeing its business struggle as costs rise. The company sees its revenue growing by between 4% and 7% this year.

Meanwhile, in another statement, Boohoo said that it has seen its UK sales decline for the first time on record. Sales dropped by 1% while the number of returns has been in a strong bullish trend. 

Boohoo and Asos are facing more challenges. For example, there is intense competition from Chinese companies like Shein. Shein is able to produce its products at a faster pace since it does not need to comply with the strict labor laws like those in the UK.

Boohoo share price forecast

The daily chart shows that the BOO share price has been collapsing in the past few months. The shares have moved from an all-time high of 438p to the current 57p. Along the way, the stock has moved below the important support level of 63p, which was the previous YTD low. 

Boohoo remains below the 25-day and 50-day moving averages while oscillators have moved to the oversold levels. Therefore, there is a likelihood that the stock will keep falling as bears target the next key support level at 45p.

The post Here’s why Asos and Boohoo share prices crashed appeared first on Invezz.

Previous Post

Four-Week Average of Weekly Initial Claims Hits the Highest Level Since March

Next Post

Chinese Antitrust Policy: Politics Over Economics

Next Post
Chinese Antitrust Policy: Politics Over Economics

Chinese Antitrust Policy: Politics Over Economics

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!
  • Trending
  • Comments
  • Latest
Dow Jones, the S&P 500, and Nasdaq price forecast after last week’s gain

Dow Jones, the S&P 500, and Nasdaq price forecast after last week’s gain

0

How Did CNN+ Get Canned by Netflix? Austrian Economists Might Have an Answer

0
AOL, Elon Musk, and Twitter

AOL, Elon Musk, and Twitter

0

Why the Yen Fell While the Dollar Rallied

0
Dow Jones, the S&P 500, and Nasdaq price forecast after last week’s gain

Dow Jones, the S&P 500, and Nasdaq price forecast after last week’s gain

June 26, 2022

For Presidents, Unpopularity Is a Simple PR Problem. Biden Is No Exception

June 26, 2022
Tribalism’s Big Lie

Tribalism’s Big Lie

June 26, 2022
The Lineaments of the Ancient Constitution

The Lineaments of the Ancient Constitution

June 26, 2022

Recent News

Dow Jones, the S&P 500, and Nasdaq price forecast after last week’s gain

Dow Jones, the S&P 500, and Nasdaq price forecast after last week’s gain

June 26, 2022

For Presidents, Unpopularity Is a Simple PR Problem. Biden Is No Exception

June 26, 2022
Tribalism’s Big Lie

Tribalism’s Big Lie

June 26, 2022
The Lineaments of the Ancient Constitution

The Lineaments of the Ancient Constitution

June 26, 2022

Disclaimer: ChinaSecretsRevealed.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

  • About Us
  • Contact Us
  • Privacy Policy
  • Terms & Conditions
  • Emial Whitelisting

Copyright © 2022 ChinaSecretsRevealed. All Rights Reserved.

No Result
View All Result
  • Economy
  • Editor’s Pick
  • Investing
  • News
  • Stock

Copyright © 2022 ChinaSecretsRevealed. All Rights Reserved.