Boohoo projects FY24 revenues to decline between 12 to 17 percent

For the six months to August 31, 2023, Boohoo Group revenue of 729.1 million pounds, declined 17 percent versus last year, with UK down 19 percent and international down 15 percent.

Revenues in core brands declined 10 percent. Gross margin at 53.4 percent, was up 90 bps, adjusted EBITDA was 31.3 million pounds with adjusted EBITDA margin of 4.3 percent, up 30bps.

Commenting on the outlook, John Lyttle, Boohoo Group CEO, said in a statement: “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.”

Boohoo H1 loss widens, projects revenue decline for FY24

The company reported loss per share for the first half period increased by 55 percent from negative 1.19p to negative 1.85p. Adjusted diluted loss per share was negative 0.91p, up 414 percent on the first half of the prior year.

Given the slower volume recovery than previously anticipated and the continued targeting of more profitable sales within the company’s labels, revenues for the year ending February 28, 2024 are now expected to decline by 12 percent to 17 percent.

In line with prior guidance, adjusted EBITDA margins are expected to be between 4 percent and 4.5 percent given the strong progress made on gross margin and cost control. Adjusted EBITDA is expected to be between 58 million pounds to 70 million pounds.

The company added that the board’s confidence remains unchanged in rebuilding profitability over the medium term, generating a 6 percent to 8 percent adjusted EBITDA margin while getting back to growth.

Boohoo posts revenue decline in the UK and international markets

The company’s UK market revenue was 441.3 million pounds, down 19 percent on 2022 reflecting the impact of the macro environment on consumer demand, as well as price investments and increase of the Debenhams marketplace within the sales mix. Gross margin improved to 51.6 percent.

USA revenues declined 11 percent versus the prior year. The company said, delivery times to the USA for most of the period remained elevated compared to pre-pandemic levels, and this impacted demand.

Rest of Europe revenue decreased by 16 percent year on year, with performance impacted by annualisation against strong wholesale comparatives with new partners onboarded in the first half of the prior financial year. Gross margin improved to 53.3 percent.

Rest of world revenue decreased by 23 percent on the prior year to 44.8 million pounds, while gross margin improved from 50.8 percent to 53.3 percent with return rates improving year on year.