UK firm Boohoo reports revenue of £1.769 bn in FY23

Gross margin was reported at 50.6 per cent in FY23, a drop of 190 basis points from the previous year. The decline is attributed to the cost pressures associated with COVID-19, including an increase in raw material prices and freight costs, as well as the expenses related to stock clearance, the company said in a press release.

The Boohoo Group has also significantly reduced its inventory by 36 per cent year-on-year (YoY), or by £101 million in absolute terms as of the end of February.

Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortisation) stood at £63.3 million, reflecting a 49 per cent decrease, with the adjusted EBITDA margin at 3.6 per cent.

"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. We will deliver sustainable returns on these investments. We will continue to give our customers the latest trends, outstanding value and a great experience. 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. Our boohoo family has continued to deliver for our customers and the business, and I want to thank them for all of their hard work and dedication," said John Lyttle, group CEO.

Despite the challenges, the group has made a £91 million capital expenditure investment, focusing on building infrastructure for future growth. Notable investments include automation in Sheffield and the establishment of a US distribution centre.

ALCHEMPro News Desk (DP)