Boohoo, a fashion group, has reported a decrease in revenue and profits for the six months ending on August 31. However, the company has stated that it is focusing on “improved profitability and returning to growth” by investing in product, price, and proposition.
During the period, the fashion group’s revenue dropped by 17% to £729.1 million. It also expects a decline of 12%-17% in revenue for the year ending in February 2024, due to slower-than-expected recovery in sales volumes.
Profit also decreased by 16% to £398.2 million.
Despite the disappointing results, Boohoo claims to have made significant progress in the last six months. The company successfully completed several operational and strategic projects and witnessed an improvement in adjusted EBITDA margin.
However, revenues from core brands experienced a decline of 10%, which is in line with the previously given guidance of an overall revenue decrease of 10% to 15%. Boohoo decided to focus on more profitable sales, leading to more substantial declines in its labels, although this move contributed to improved group profitability.
“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.”
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