Boohoo’s revenue loss escalates
Boohoo Group reflects on a meager half-year in which revenue declined by 17 percent. Particularly in the United Kingdom, which accounts for most of its revenue, the company suffered significantly. The group’s loss (adjusted EBIT) amounted to 3.9 million pounds.
Boohoo’s revenue for the first half of the fiscal year 2023-2024 was 729.1 million pounds, according to the published figures, of which 441.3 million pound was generated in the UK (down 19 percent).
The company behind the eponymous online fashion retailer and brands like Coast and Karen Millen had anticipated a revenue decline of 10 to 15 percent. The mentioned decrease of 17 percent, therefore, came as a unpleasant surprise. Investors cry along, as the Dutch newspaper Het Financieele Dagblad reports.
Investors cry along.
Throughout the previous fiscal year (2022-2023), Boohoo Group had already experienced an 11 percent revenue decline, putting the group in the red after a series of good years. However, during the presentation of the annual figures, Boohoo emphasized that it had gained ‘significant market share’ over the past three years. It appears that this relative growth has come to an end, partly due to increased competition from Chinese online fashion sellers.
Path to growth and profit
Boohoo Group expects a revenue loss of 12 to 17 percent for the entire fiscal year, “given the slower volume recovery than previously anticipated and the continued targeting of more profitable sales within our labels”.
Group CEO John Lyttle has no doubts about Boohoo’s future:
‘We see a clear path to improved profitability and getting back to growth.’
The Group’s focus is on executing its back-to-growth strategy through disciplined investments across product, price, and proposition. “Investments in key strategic initiatives are underpinned by our significant cost savings program.”