Boohoo revenue falls as inflation challenges continue
Boohoo Group has released its financial results for the first quarter ending 31 May 2022, revealing an 8% decrease in revenue to £445.7 million.
UK revenue decreased by 1% to £272.1 million, but was up 94% against FY20. The group highlights that UK sales improved month-on-month in the quarter and returned to net sales growth in May.
Boohoo Group's gross margin for the quarter was 52.8%, down 220bps against a "strong" prior year comparative.
Looking ahead, Boohoo Group expects low-single digits revenue growth for FY23, with a return to growth in Q2 and growth rates improving in the second half of the year due to normalising returns rates and consumer demand.
Adjusted EBITDA margins are expected to be between 4% and 7%, as the group continues to be affected by pandemic-related and inflationary factors which negatively impact costs within its supply chain and international competitive proposition.
John Lyttle, CEO of Boohoo Group, 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.
"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.”
