Boohoo hails “significant” market gains despite fall in profit
Boohoo says it has made “significant market share gains” across the last three years, particularly in the UK.
This is despite a fall in profits for the online fashion retailer in the 2023 financial year, which dropped 14% to £895.2m. Revenue also decreased, by 11% to £1.77bn. However, these figures were ahead of pre-Pandemic levels by 34% and 43% respectively.
UK sales in 2023 were ahead of pre-COVID rates by 61%.
The retailer had made a capital expenditure investment of £91m to support growth, which included the development of an automated system at its Sheffield warehouse and a US distribution centre.
Boohoo said it now has 18 million active customers worldwide, up from 13 million in 2020, due to “organic growth and an increased brand portfolio”. The retailer added that it had a target addressable market of up to half a billion potential customers in key markets.
John Lyttle, group CEO, said: “Over the last three years, the Group has achieved significant market share gains. Looking ahead, we are investing for the future growth of this business with automation, local fulfilment capacity in the US and building global brand awareness.”
“Our confidence in the medium-term prospects for the group remain unchanged, and as we execute on our key priorities we see a clear path to improved profitability and getting back to double digit revenue growth”, he added.