Boohoo sees revenues drop but remains focused on growth
Boohoo Group has reported a 17% drop in revenue to £729.1 million for the first half ending 31 August 2023, with declines across UK and international markets.
The group said revenue fell 19% in the UK and 15% internationally.
Revenues in core brands were down 10%, consistent with prior guidance of an expected 10% to 15% decline.
However, the group said it has made "substantial progress", delivering key operational and strategic projects and an improvement in adjusted EBITDA margin over the last six months.
Gross margin reached 53.4%, up 90bps against last year, despite "significant reinvestment of supply chain and input cost deflation into lead times and lower prices for customers".
Adjusted EBITDA totalled £31.3 million, reflecting improvements in gross margin, distribution cost efficiencies from automation and overhead cost reduction.
Looking ahead, Boohoo Group remains focused on executing its back to growth strategy through "disciplined investments" across product, price and proposition.
Given the slower volume recovery than previously anticipated and the continued targeting of more profitable sales within its labels, revenue for the year ending 28 February 2024 is now anticipated to decrease 12% to 17%.
John Lyttle, CEO of Boohoo Group, said: "Over the first half we have made substantial progress across key projects and initiatives, including the launch of our US distribution centre.
"We have seen significant improvements in sourcing lead times and invested in pricing to reinforce our value credentials. We have identified more than £125 million of annualised cost savings that support our investment programme.
"Our confidence in the medium-term prospects for the group remains unchanged as we execute on our key priorities where we see a clear path to improved profitability and getting back to growth."