Boohoo reports drop in festive sales
Boohoo has posted an 11% revenue drop to £637.7 million in the three months to 31 December, which was in line with the online fashion retailer’s previous guidance.
UK revenues declined by 11% year-on-year while international revenues fell by 10% after trade was impacted by extended delivery times compared to pre-pandemic levels.
John Lyttle, Boohoo chief executive, said: “Performance in the period is in line with expectations and reflects the normalisation of the channel shift online over the last twelve months, but demonstrates the significant market share gains the group has made over the last three years. Looking ahead, whilst the demand outlook is uncertain due to macro-economic factors, cost inflation is expected to begin to moderate in the second half of the year.”
During the period, the retailer maintained tight control of inventory and improved speed and flexibility within its global supply base. Inventory was also significantly reduced with a fall of 27% year-on-year.
Boohoo said its adjusted EBITDA is expected to be in line with market expectations in the year ending 28 February 2023. However, revenues are forecast to decline by around 12% in the period.
Lyttle added: “The group has continued to invest in key strategic priorities that will enable future growth, and the progress made gives us confidence that as macro-economic headwinds ease it will be well-positioned to rebound strongly.”