There are countless shares offering exciting growth potential in the stock market right now. However, I don’t think this trio do, which is why I’m avoiding them like the plague. Losing market share The first stock I’d give a wide berth to is ( ).
It’s share price has collapsed from 413p in the June 2020 to just 32p today. That’s a 92% drop! Ouch. What’s gone wrong here? Well, one big problem has been competition, notably from Shein.
Last year, the Chinese fast fashion juggernaut reportedly doubled its profits to $2bn. That’s more than boohoo generated in annual revenue. To improve its US customer proposition, boohoo opened a warehouse in Pennsylvania in 2023.
This would be a “ ” said CEO John Lyttle at the time, highlighting the quicker delivery times. Fast-forward a year, the US warehouse is shutting and there are reports that boohoo may break itself up. Apparently and , store brands from a bygone era, could be sold or spun off.
Admittedly, these moves do have the potential to unlock some value and move the firm back into the black. But that won’t change the cut-throat competitive dynamics in the fast fashion industry. Shein has all the things boohoo doesn’t — rising customers and sales, surging profits, and momentum.
If it also goes public, possibly in London, it’ll have a huge new war chest of cash. I’m avoiding boohoo stock. Balance sheet worries Next up is ( ), the British luxury car brand associated with the James Bond films.
Unfortunately, t.