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Boohoo says exposure to sterling plunge is limited – finance chief
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LONDON (Reuters) – British online fashion retailer Boohoo said on Wednesday its exposure to the recent plunge in the value of the pound versus the dollar was limited as it only purchased about 15% to 20% of its stock in dollars.
LONDON (Reuters) – British online fashion retailer Boohoo said on Wednesday its exposure to the recent plunge in the value of the pound versus the dollar was limited as it only purchased about 15% to 20% of its stock in dollars.
Chief financial officer Neil Catto said about 60% of Boohoo’s stock purchases are made in sterling.
“So we’re not directly exposed to a great degree there,” he told Reuters.
“Usually we’re a net seller of dollars. We take cash in for our U.S. business and we pay out dollars to suppliers, but actually we’re taking more cash in than we’re laying out.”
Catto was speaking after Boohoo warned on full year profit.
(Reporting by James Davey; editing by William James)
Foreign currency refers to any currency that is not the domestic currency of a particular country. It is used in international trade and can fluctuate in value based on market conditions.
Financial management involves planning, organizing, directing, and controlling the financial activities of an organization. It includes managing funds, investments, and financial reporting.
A currency exchange rate is the value of one currency expressed in terms of another currency. It determines how much of one currency you can exchange for another.
Sterling, often referred to as the British pound, is the official currency of the United Kingdom. It is abbreviated as GBP and is one of the world's oldest currencies still in use.
A net seller is an individual or entity that sells more of an asset than it buys over a specific period. In finance, this term often refers to currency transactions.
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