Shares in fashion giant Boohoo have been slashed to their lowest level since the summer of 2015 following the publication of the group's half-year results.
The Manchester-headquartered company has now lost half its value since the end of March this year, with its shares trading at just over 28p.
They had been valued at just under 60p on March 31, a high in the last 12 months, however they have been on the slide ever since. The highest shares in Boohoo have ever been valued was at 412p each at the end of June 2020.
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READ MORE: Losses widen and sales tumble at Boohoo as it eyes £125m of cuts
Boohoo started Tuesday (October 3) with a market capitalisation of £400m, nearly £200m lower than when it floated on the London Stock Exchange in March 2014.
The latest slide in Boohoo's share price comes after it announced its pre-tax losses had widened during the first half of its financial year. 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%.
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One person who has been taking advantage of Boohoo's falling share price is billionaire Mike Ashley. He has been steadily increasing his stake in the group after first investing in June.
In recent months, Boohoo has also had to contend with a revolt by shareholders over proposed bonuses for its executives. Over 32% of shareholders voted against the report at its annual general meeting on June 22.
Chief executive John Lyttle was handed a £650,000 bonus last year despite the group racking up losses of over £90m.
In March, shareholders also voiced their displeasure at its £175m bonus plan after a vote to approve it saw significant opposition. Announced in April, the plan will see bonuses handed out over a period of time if Boohoo's market capitalisation reaches £5bn.
Boohoo's falling share price prompted a hedge fund owned by one of the richest men in the world to sell almost its entire stake in June. Citadel GP LLC, which is majority owned by billionaire founder and chief executive Ken Griffin, has slashed its holdings from 8.9% to 1.8%.
Following the publication of Boohoo's full-year results in May this year, analysts encouraged investors to buy shares in the group after declaring "the worst is over" for the fashion giant. Experts at Panmure Gordon said Boohoo provided "significant reassurance" in its latest full-year results despite it falling to a pre-tax loss of £91m.
As well as encouraging investors to buy up shares, the analysts have also increased their target price from 60p to 70p. At the time, Boohoo's shares were trading at 45p, giving it a market capitalisation of just under £560m.
At the start of 2023, analysts warned that Boohoo might not return to making a full-year profit until 2026.