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Boohoo sacrifices margins for sales

Boohoo sacrifices margins for sales

It’s not unusual for Boohoo (BOO) bosses to play it safe when it comes to predicting future performance, and it’s not unusual for the share price to fall in response. History repeated itself the day these half-year numbers hit the market. This time, it was margins that caught investors’ attention and, specifically, where cash profit margins might land when the group reports full-year results around April next year. For now, management says margins should be in the range of 9-10 per cent (compared with previous guidance of 10 per cent and the 10.6 per cent achieved in this period).

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