Boohoo swings to interim loss, downgrades FY revenue guidance

(Sharecast News) - Fast fashion retailer Boohoo said on Tuesday that it swung to a first-half loss, as it cut its full-year revenue outlook. In the six months to the end of August, the company swung to an adjusted loss of £9.1m from a profit of £6.2m in the same period a year earlier, with revenues down 17% to £729.1m.

UK revenue fell 19%, while the international segment saw a 15% decline.

Revenue in core brands declined 10%, in line with Boohoo's guidance of a 10% to 15% drop. Boohoo said it had successfully targeted more profitable sales in its labels, which resulted in more significant revenue declines.

Given the slower-than-expected volume recovery and the continued targeting of more profitable sales within labels, Boohoo now expects revenues for the year ending 28 February 2024 to fall by 12% to 17%. This is down from previous guidance of a 0% to 5% decline.

Adjusted EBITDA margins are still expected to be between 4% and 4.5%, however, given the "strong progress" made on gross margin and cost control. Boohoo also said that adjusted EBITDA is set to be between £58m and £70m, while capital expenditure will be around £75m.

Chief executive John Lyttle said: "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."