Boohoo sees sales slip after strong 2021
Online fashion retailer boohoo saw a slump in sales in the latter months of 2022, citing a strong end to the previous year and a focus on cost reduction.
In the four months to December 31, boohoo recorded a UK revenue of £400.8m, a fall of 11% £451m in 2021. This however was 57% higher than in 2019, the last Christmas period unaffected by COVID-19.
boohoo cited a strong 2021 as a reason for the fall in revenue. Concerns about the Omicron variant towards the end of 2021 meant many customers looked towards online retailers as they stayed away from the high street.
boohoo said it had seen improvements in its cash generation through tighter inventory management, cost control, and an improved working capital cycle.
The retailer also noted the launch of its distribution centre in Sheffield, which it said will lead to improvements in efficiency in the coming months.
On the international front, boohoo saw a fall in revenue in all regions, which it said was affected by extended delivery times.
boohoo expects its 2023 financial year (ending February 28) revenues to decline by 12% for the full twelve months. The retailer said it continues to optimise its operations and invest selectively in key strategic projects.
John Lyttle, boohoo CEO, said: “Looking ahead, whilst the demand outlook is uncertain due to macro-economic factors, cost inflation is expected to begin to moderate in the second half of the year
“We have reduced inventory by 27% year on year and with this focus on careful inventory management, strong cost control and cash management, we will continue to drive operational and cost efficiency across the business. The group has continued to invest in key strategic priorities that will enable future growth, and the progress made gives us confidence that as macro-economic headwinds ease it will be well-positioned to rebound strongly.”