Manchester fast fashion giant Boohoo has posted pre-tax losses of £26.4m for the six months to the end of August 2023. Revenue also fell from £882.4m to £729.1m over the period.
In a statement issued to the LSE, the group has also identified more than £125m of annualised savings across the costs of goods, its supply chain and overheads.
Chief executive John Lyttle said: “Over the first half we have made substantial progress across key projects and initiatives, including the launch of our US distribution centre. We have seen significant improvements in sourcing lead times and invested in pricing to reinforce our value credentials.
“We have identified more than £125m 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.”
The statement added: “The group’s focus remains on executing its back to growth strategy through disciplined investments across product, price and proposition. Given the slower volume recovery than previously anticipated and the continued targeting of more profitable sales within our labels, revenues for the year ending 28 February 2024 are now expected to decline by 12% to 17%.
“In line with prior guidance, adjusted EBITDA margins are expected to be between 4% and 4.5% given the strong progress made on gross margin and cost control. Adjusted EBITDA is expected to be between £58m to £70m. Capital expenditure is expected to be approximately £75m.
“The group’s back to growth strategy will unlock the significant growth opportunity. The board’s confidence remains unchanged in rebuilding profitability over the medium term, generating a 6% to 8% adjusted EBITDA margin while getting back to growth through: continued investment in product, price and proposition, volume growth, international expansion, unlocking cost deflation; and cost control.”
