Manchester’s Boohoo Group has reported a pre-tax loss of £15.2m for the six months to August 31, 2022, compared to a £24.6m profit during the same period in 2021.
The figures for the group, which also includes the PrettyLittleThing, Debenhams, Burton and Karen Millen brands, suggest that fashion and home shopping could be among the first casualties of the cost of living crisis. Boohoo also reported a 10 per cent overall drop to £882.4m.
Chief executive John Lyttle said: “Performance in the first half was impacted by a more challenging economic backdrop weighing on consumer demand. We remain confident in the long-term outlook, as we continue to offer customers unrivalled choice, inclusive ranges and great value pricing, giving them even more reasons to shop with us.”
On its outlook, Boohoo said that as a result of the impact that the macro-economic and consumer backdrop has had on its revenues in the first half, its “expectation is for a similar rate of revenue declines to persist over the remainder of the financial year if these conditions continue.”
Boohoo recently became the first major online fast fashion brand to end its popular free-returns policy, with the introduction of a £1.99 charge in July.
