Boohoo upbeat about return to growth
Boohoo is remaining upbeat about its prospects for a return to growth despite a drop in full year sales and adjusted EBITDA.
In the year to 29 February, the online fashion group’s revenue declined by 17% to £1.4 billion due to “difficult market conditions” and its increased focus on profitability. Revenue was also impacted by the growth of the group’s marketplace offering with its commission-only revenue model.
Meanwhile, Boohoo posted a 7% drop in adjusted EBITDA to £58.6 million as its statutory pre-tax loss widened to £159.9 million from £90.7 million in the prior year.
However, the group said it had seen a positive trend in the performance of its core brands of Boohoo, Boohoo Man, Pretty Little Thing, Karen Millen, and Debenhams in the year, with the sales decline slowing from 9% in the first half to 4% in the second.
In addition, operating costs fell by 16% to £699 million as the group benefited from its ongoing cost savings programme.
John Lyttle, Boohoo group chief executive, said: “We have a highly loyal customer base and throughout the year we remained focused on maintaining our position as an industry leading, fashion-forward group with brands that deliver on-trend, high quality fashion at great value prices.
“The strength and diversity across our core brands means the group is well placed to serve a global customer base across fashion, beauty and home. Despite difficult market conditions, caused by high levels of inflation and weakened consumer demand, we made continued progress in the year.”
The group is targeting general growth, as well as continued improvements in adjusted EBITDA margin in the current financial year and said it remains on track to deliver annualised cost savings of £125 million across cost of goods, supply chain and overheads.
Lyttle added: “The group is now well positioned to return to growth, and we are focused on ensuring that growth is both sustainable and profitable.”
