Boohoo posts drop in sales and profit
Online fashion retailer Boohoo has posted a drop in full year sales and profit following the impact of the cost of living crisis.
In the 12 months to 28 February, revenue declined by 11% to £1.77 billion after UK and revenues fell by 9% and 13% respectively. However, revenue was 43% higher than in the retailer’s last reporting year prior to the pandemic.
Meanwhile adjusted EBITDA dropped by 49% to £63.3 million.
Boohoo said its business had been impacted by freight and logistics inflation related to the pandemic, as well as rising labour and energy costs. In addition, the retailer has been investing heavily in its operations, including its US distribution centre.
John Lyttle, Boohoo group chief executive, said: “Over the last three years, the group has achieved significant market share gains. Looking ahead, we are investing for the future growth of this business with automation, local fulfilment capacity in the US and building global brand awareness. We will deliver sustainable returns on these investments.”
In the year ahead, Boohoo will be focusing on rebuilding profitability and its Back to Growth strategy. For the 12 months ending 28 February 2024, it expects revenues to be between flat and a decline of 5% year-on-year.
Lyttle added: “We will continue to give our customers the latest trends, outstanding value and a great experience. Our confidence in the medium-term prospects for the group remain unchanged, and as we execute on our key priorities we see a clear path to improved profitability and getting back to double digit revenue growth.”
Boohoo’s portfolio of brands include Boohoo, Pretty Little Thing, Boohoo Man and Nasty Gal.