UK retailer Boohoo's revenue at £729.1 mn in H1 FY24

03 Oct '23

2 min read

Pic: Boohoo

Insights

UK retailer Boohoo Group saw a 17 per cent revenue decline to £729.1 million in H1 FY24.
Despite the decline, gross margins improved by 90 basis points to 53.4 per cent.
The adjusted EBITDA stood at £31.3 million with a margin of 4.3 per cent.
The company invested £36.3 million in capital projects in H1 FY24, including a new US distribution centre.

UK-based online fashion retailer Boohoo Group has reported a 17 per cent decline in revenue to £729.1 million for the first half of fiscal 2024 (H1 FY24), with the UK market witnessing a 19 per cent slump and international sales down by 15 per cent. Despite the downturn, the company's core brands experienced a 10 per cent decrease in revenues, which aligns with prior guidance estimates of a 10 to 15 per cent reduction.

The company focused on more profitable sales in its labels, causing even more significant revenue declines. However, Boohoo Group's gross margin rose by 90 basis points in H1 FY24 compared to last year, reaching 53.4 per cent.

Inventory levels in H1 FY24 were notably reduced, with a year-on-year drop of £94 million or 35 per cent. The adjusted EBITDA stood at £31.3 million with a margin of 4.3 per cent, up 30 basis points from last year. This was due to improvements in gross margin and distribution cost efficiencies stemming from automation and overhead cost reduction.

In line with its growth strategy, Boohoo Group invested £36.3 million in capital expenditure, which includes capacity expansion as part of the Sheffield automation project and a new US distribution centre in anticipation of its launch.

“Over the first half, we have made substantial progress across key projects and initiatives, including the launch of our US distribution centre. We have seen significant improvements in sourcing lead times and invested in pricing to reinforce our value credentials. 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,” said John Lyttle, CEO.

Fibre2Fashion News Desk (DP)

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