UK-based online fashion retailer Boohoo Group has reported a decrease in gross merchandise value (GMV) by 13 per cent in fiscal 2024 (FY24), compared to the previous fiscal year, totalling £1.809 billion (approximately $2.26 billion). Despite a tough macro-economic environment, the group saw a positive shift in the trajectory of its Core Brands (Boohoo, BoohooMan, PrettyLittleThing, Karen Millen, Debenhams External Marketplace). The decline in these brands slowed from 9 per cent in the first half of the year to 4 per cent in the second half, indicating some recovery.

Revenue for the year stood at £1.461 billion (approximately $2.26 billion), a decline of 17 per cent from fiscal 2023. This reduction reflects Boohoo’s strategic shift towards enhancing profitability and the impact of difficult market conditions. Additionally, the growth of the marketplace, which operates on a commission-only revenue model, also affected overall revenue growth.

The group reported an improvement in gross margin, which increased by 120 basis points to 51.8 per cent. This rise was attributed to the growth of the marketplace, the impact of a cost-saving programme, and decreases in freight and raw material costs, Boohoo Group said in a media release.

Operating costs saw a reduction, coming in at £699 million, down 16 per cent from the previous year. This decrease was driven by cost-saving measures that the group has been implementing.

Adjusted EBITDA margin improved to 4 per cent, up 40 basis points from fiscal 2023, with adjusted EBITDA reaching £58.7 million, a decrease of 7 per cent from the previous year. Inventory levels increased by £29.9 million compared to the previous fiscal year.

"We have a highly loyal customer base and throughout the year we remained focused on maintaining our position as an industry leading, fashion-forward group with brands that deliver on-trend, high quality fashion at great value prices. The strength and diversity across our core brands means the group is well placed to serve a global customer base,” said John Lyttle, group CEO.

Fibre2Fashion News Desk (DP)

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