Boohoo Reports Slowdown In Sales As Economy Deteriorates

  • Boohoo’s revenue fell 10% to £882.4 million.
  • The company now expects lower revenue and weaker EBITDA.
  • Boohoo shares tumble 8.1%

Boohoo announced its interim results for the 6 months ended 31 August, which saw the online fashion retailer cut its full-year outlook.

The impact of the macroeconomic environment and inflation-driven costs mean the company now expects revenue to fall over the full year. EBITDA is expected to be between 3% and 5%, compared to its previous guidance of 4% and 7%.

Meanwhile, Boohoo reported revenue of £882.4 million, down 10% from the prior year. In addition, pre-tax profit fell 90% to £6.2 million as the company continued to battle with the cost of living crisis.

“Performance in the first half was impacted by a more challenging economic backdrop weighing on consumer demand,” stated John Lyttle, Group CEO.

Lyttle continued, “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.”

Furthermore, rival Asos reported weaker sales and a warning on profit earlier this month.

Boohoo shares tumbled 8.1% on Wednesday.

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