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Boohoo posts first ever UK sales drop as USA and Europe revenue also falls

Boohoo has posted its first ever drop in UK sales as the fashion giant struggled to keep shoppers spending.

The Manchester-headquartered group has reported a group revenue of £445.7m for the three months to May 31, 2022, down from the £486.1m it achieved during the same period in 2021.

Its UK sales dipped from £274.6m to £272.1m while its revenue in the rest of Europe fell from £54.4m to £49.6m.

READ MORE: Boohoo CEO in line for major bonus boost as share price drop leads to executive pay revamp

US sales were also down from £131.9m to £95m but its revenue in the rest of the world increased from £25.2m to £29m.

In a statement issued to the London Stock Exchange, Boohoo said its revenue declined because of Covid-19 lockdowns in the prior year driving “comparative strength”.

Chief executive John Lyttle said: “I am pleased with the progress we are making towards our strategic priorities, which is already having a meaningful impact operationally within the business.

“We have seen promising signs from the group’s sales performance in the UK, which has improved month-on-month in the period and we are looking ahead towards our key summer trading season as holidays ramp up and customers look to the latest fashion from across our brands.

“Looking forward, we will continue to focus on optimising both our financial and operational performance to ensure the business is well placed to take advantage of future growth opportunities.”

Boohoo’s brands include BoohooMAN, Karen Millen, Nasty Gal, PrettyLittleThing, Coast, Misspap, Oasis, Warehouse, Burton, Wallis, Dorothy Perkins and Debenhams.

On its future, Boohoo added: “The group’s outlook for the year ending 28 February 2023 remains unchanged.

“Revenue growth for FY23 is expected be low-single digits, with a return to growth in Q2 and growth rates improving in the second half of the year as the group annualises high returns rates and normalising consumer demand.

“Adjusted EBITDA margins are expected to be between 4% and 7%, in line with prior guidance, as the group continues to be affected by pandemic-related and inflationary factors that negatively impact costs within its supply chain and international competitive proposition, offset to some extent by the financial benefits from our strategic priorities and leveraging of overheads.”

Source: www.business-live.co.uk

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