Revenue at Boohoo slumps by 11%

Revenue at Boohoo fell by 11 per cent in 2022 in the UK, which the online fashion retailer blamed on extended international delivery times.

In its latest earnings report, the fast fashion brand said revenue had dropped to £637.7 million in the three months to 31 December.

In the US, revenues were down 17 per cent to £129 million, while international sales fell ten per cent.

Boohoo said its adjusted EBITDA is expected to be in line with market expectations in the year ending 28 February 2023. Revenues are forecast to decline by around 12 per cent, less than the downgraded guidance of 10 per cent the company predicted in September.

Commenting on the news John Lyttle, chief executive at Boohoo, said: "Performance in the period is in line with expectations and reflects the normalisation of the channel shift online over the last twelve months, but demonstrates the significant market share gains the Group has made over the last three years.”

Despite the disappointing results, Lyttle said the company is confident that as macro-economic headwinds ease it will be “well-positioned to rebound strongly”.

Boohoo recently partnered with DHL Supply Chain on its first-ever US distribution centre. The company said the move is part of plans to develop a faster and smoother service for its growing US customer base.

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