Analysts have slashed the target price of Boohoo's shares by almost half following its interim results.
Experts at Panmure Gordon now expect the group's shares to reach 40p each, down from the 70p they predicted in May this year.
Boohoo's shares fell to their lowest value since the summer of 2015 this week after it announced its pre-tax losses had widened during the first half of its financial year.
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The group posted pre-tax losses of £26.4m for the six months to the end of August 2023, compared to losses of £15.2m during the same period in 2022. Boohoo's revenue also fell from £882.4m to £729.1m over the same time.
In a statement issued to the London Stock Exchange, the group has also identified more than £125m of annualised savings across the costs of goods, its supply chain and overheads. The group added that it now expects its full-year revenue to fall between 12% and 17%.
Panmure Gordon's Georgia Pettman said: "Boohoo's 19% H1 sales decline exemplifies the persistent inflationary pressures playing out within the digital marketing landscape.
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"Virtual retailers are increasingly turning their attention to ongoing order profitability and management has revised sales expectation to c.-15% (previously c.-5%) for the full year.
"Our buy recommendation remains... we are more positive on self-help initiatives taking shape across systems and warehousing."
She added: "We are supportive of Boohoo's attempts to future proof the business and self-help initiatives at its disposal.
"We believe optionality across its brands warrants more meaningful marketing investment medium-term (more favourable gross margin profile from owned brands), alongside growth potential within marketplace.
"H1 has been a period of price investment and input cost deflation. A return to volume and international growth will remain in focus over the next 12 months to unlock further profit potential."
Boohoo is next expected to issue a statement to the market with a trading update in January 2024.