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Boohoo warns of revenue drop

Boohoo

Boohoo has released a trading statement this morning, showing that its group revenue has fallen by 11%.

Its international income was down 10%, with the USA seeing the biggest fall (-12%).

For the 4 months to 31st December, its total revenue was £637.7m, down from £714.5m in the same period last year.

The Manchester-based fashion e-tailer stated that “extended delivery times compared to pre-pandemic levels continuing to affect the proposition.”

Gross margin was 49.7% and was expected to improve year-on-year, with a reduction in markdown activity.

“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,” said John Lyttle, CEO.

“We have reduced inventory by 27% year on year and with this focus on careful inventory management, strong cost control and cash management, we will continue to drive operational and cost efficiency across the business. 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.”

During the period it added automation to its distribution centre in Sheffield to improve efficiency.

For the year end (28th February), it expected its profits to be in line with expectations.

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