• Monday, April 15, 2024

Business

Boohoo boss says company ‘back-to-growth strategy’ after reporting £91m loss

Boohoo Group chairman Mahmud Kamani (Photo: Jerritt Clark/Getty Images)

By: Pramod Thomas

ONLINE fashion retailer Boohoo Group has reported a £91 million annual loss mainly due to supply chain disruption, weakening consumer demand and inflationary pressures, reports said.

The Manchester-based group made a loss of £90.7m in the 12 months to February 28, compared with a pre-tax profit of £7.8m last year.

Boohoo owns PrettyLittleThing, Karen Millen and Debenhams.

According to the company, sales fell by 11 per cent to just under £1.8 billion during the period, although revenue was 43 per cent higher than in 2020.

UK sales were down 9 per cent against last year, but 61 per cent higher than 2020’s regional total. Gross margin fell by 190 basis points to 50.6 per cent.

The performance of the group was poor in the US, with sales down 24 per cent over the year.

Boohoo chief executive, John Lyttle, said that underlying profits would rise in the year ahead.

“Over the last three years, the group has achieved significant market share gains. Looking ahead, we are investing for the future growth of this business with automation, local fulfilment capacity in the US and building global brand awareness,” Lyttle is reported to have said.

“Our confidence in the medium-term prospects for the group remain unchanged, and as we execute on our key priorities we see a clear path to improved profitability and getting back to double digit revenue growth.”

Boohoo forecast revenue in 2023/24 would be flat to down 5 per cent, with a focus on profitable sales, and adjusted earnings before interest, taxes, depreciation, and amortisation (ebitda) would rise to between £69m and £78m, in line with market expectations, Reuters reported.

Mahmud Kamani, executive chairman of Boohoo Group, told The Times, “We’ve had days and days of higher costs . . . it’s like dodgem cars where we’re just moving and swerving. Now . . . it’s not only exciting, it’s fun, because the opportunities are opening up everywhere for us.”

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