// Boohoo revenue falls 11% in its key Christmas trading period, hurt by delivery disruption and tough comparatives
// The fast fashion retailer expects sales to drop about 12% this financial year
Boohoo has seen sales slump in 2022, as it blamed strong year-on-year comparatives and extended international delivery times.
The fast fashion retailer posted an 11% revenue drop to £637.7 million in the three months to 31 December.
UK revenues declined by 11% year-on-year, but fell further in the US, down 17% to £129 million while international sales dropped 10% year-on-year.
Boohoo said its adjusted EBITDA is expected to be in line with market expectations in the year ending 28 February 2023. However, revenues are forecast to decline by around 12% in the period, slightly behind the downgraded guidance for a 10% drop it gave in September.
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Boohoo said the fall was due to strong comparatives with the previous year, while “extended delivery times compared to pre-pandemic levels [were] continuing to affect the proposition.”
Boohoo Chief executive John Lyttle said the dip in revenue “reflects the normalisation of the channel shift online over the last twelve months.”
He 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.”
Lyttle added: “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.”
The weaker trading echoed a sales fall at rival Asos but contrasts stronger performances from more traditional retailers including Next and Marks & Spencer which both posted sales growth despite Britain being in the midst of a cost-of-living crisis.
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