Boohoo posts drop in quarterly sales
Boohoo saw its revenue decline by 8% to £445.7 million in the three months to 31 May after sales were hit by slowing online spending post-pandemic and more shoppers returning clothes.
However, revenue was up 75% compared to three years ago, prior to the emergence of Covid-19.
UK sales were down 1% overall in the period, but improved month-on-month before returning to growth in May.
Meanwhile sales in Europe and the US fell by 9% and 28% respectively. Boohoo said its international performance was impacted by increased delivery times, although sales in the rest of the world were up 15%.
During the period, Boohoo continued to increase sourcing from near-shore markets to reduce exposure to elevated inbound freight costs. Due to tight control of inventory, the company was left with lower levels of stock compared to at the end of its previous financial year. It also benefited from improvements in inventory turn and increased supply chain flexibility.
John Lyttle, Boohoo chief executive, said: “”I am pleased with the progress we are making towards our strategic priorities, which is already having a meaningful impact operationally within the business. We have seen promising signs from the group’s sales performance in the UK, which has improved month-on-month in the period and we are looking ahead towards our key summer trading season as holidays ramp up and customers look to the latest fashion from across our brands.”
Boohoo’s outlook for the year ending 28 February 2023 remains unchanged. with revenue growth expected to be in low-single digits.
Lyttle added: “Looking forward, we will continue to focus on optimising both our financial and operational performance to ensure the business is well placed to take advantage of future growth opportunities.”
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