- Boohoo reports a fall in sales
- Revenue declined 8%
- Boohoo shares have tumbled
Boohoo reported an expected fall in sales in its latest quarter, after a tough comparison with the same period of last year, which was boosted by the pandemic.
Escaping lockdowns were not beneficial to everyone…
Revenue for the online fashion retailer fell 8% to £445.7 million from £486.1 million in the prior-year quarter.
In addition, UK sales fell 1% but improved month on month and returned to growth in May.
International sales were impacted by increased delivery times due to supply chain issues, with its US division sales down 28%.
“I am pleased with the progress we are making towards our strategic priorities, which is already having a meaningful impact operationally within the business,” commented CEO John Lyttle.
The group’s outlook remains unchanged. Revenue growth for FY23 is expected to be in the low single digits with a return to growth in Q2.
However, it continues to be affected by pandemic-related and inflationary factors that are negatively impacting costs within its supply chain.
Bad news for Boohoo investors, with the stock down 15% on Thursday and down 55% in 2022. Ouch.
The graph above shows Boohoo’s website traffic since 2012. Traffic grew significantly, spiking shortly after the pandemic before a sharp turnaround. The fashion retailer has been unable to hit those same heights since but has regained some momentum.