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Boohoo cofounder sells £10 million stake in the business
Boohoo
LONDON — The cofounder and co-CEO of online fast fashion retailer Boohoo sold £10.6 million worth of shares in the business on Wednesday.
Boohoo's share price, already under pressure due to margin concerns, fell 6% on the back of the news.
Filings on Thursday show that Carol Kane sold 4.65 million shares in the AIM-listed business on Wednesday at an average selling price of £2.60. She retains a 4% stake in the business.
Kane cofounded online fast fashion retailer Boohoo alongside co-CEO Mahmud Kamani in 2006. The fast-growing retailer, which targets teen and 20-something women, listed on London's AIM stock exchange in 2014, and has become one of the City's hottest stocks over the last year, rising over 100%.
The share sale came after Manchester-based Boohoo delivered half-year results showing booming revenue and profits. Boohoo said on Wednesday that sales jumped by 106% in the first six months of the year, while pre-tax profits climbed by 41%.
However, Boohoo's stock fell on Wednesday despite the growth. Investors are concerned about Boohoo's profit margins. Gross margin declined by 200 basis points to 53.3% in the first half, which the company put down to "planned investments in the customer proposition."
Kane's share sale appears to have spooked already jittery investors. Boohoo's share price is down 6% in early trade in London:
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