The company reported a 10% decline in revenues for its core brands, aligning with previous guidance. Notably, the decline in the group’s labels was more pronounced but contributed to enhanced profitability. Boohoo emphasized investments in key strategic initiatives and significant cost savings.
Total revenue contracted by 17% to £729.1 million, accompanied by a 16% drop in gross profit to £389.2 million. Adjusted EBITDA registered a 12% decline at £31.3 million, while the pre-tax loss amounted to £9.1 million, reversing a £6.2 million profit from the prior year.
The revenue downturn in core brands and labels each accounted for 8 percentage points of the total revenue drop. The UK market experienced a 19% revenue decline due to macroeconomic factors, consumer demand fluctuations, and other considerations. International revenues also faced a 15% reduction.
Despite these challenges, Boohoo highlighted positive developments, including the successful launch of its US distribution center, which led to improved delivery times. The company also capitalized on supply chain deflation and lower input prices, reinvesting the savings to enhance lead times and reduce prices for customers.
CEO John Lyttle expressed confidence in the medium-term prospects for the group, underscoring the focus on executing its back-to-growth strategy. However, slower volume recovery and continued efforts to target more profitable sales within its labels prompted an expected revenue decline for the year ending February 28, 2024, projected to range from 12% to 17%. EBITDA margins are forecasted to fall between 4% and 4.5%, with adjusted EBITDA anticipated to range from £58 million to £70 million.
