American hedge fund Camelot Capital Partners is building a stake in Boohoo Group PLC (AIM:BOO) as the retailer battles the impact of customer returns and inflation.
Camelot has taken a 4.59% stake in the British online retailer, crossing the threshold for regulatory disclosure
The California-based hedge fund bought approximately 58mln shares or an unknown consideration, which could be worth more than £34mln.
At the close of the market yesterday, Boohoo’s shares were trading at a price of 59.32p per share.
The retailer’s share price fell 1.31% today, after dropping 52.35% in the past six months following some disappointing trading news.
Boohoo’s revenue dropped 8% in the three months of trading to the end of May, as the impact of inflation increased costs in its supply chain.
The retailer did reiterate its guidance for the full year, anticipating revenue growth in the low-single digits with a return to growth in the second quarter, but was knocked today by a profit warning from German rival Zalando.