Boohoo's fiscal struggles continue, but CEO remains optimistic
The U.K.-based fast-fashion retailer, Boohoo Group (LON:BOOH), reported on Tuesday that it swung into a pretax loss for the fiscal year 2023 as revenue declined due to lower sales, higher freight and logistics costs, as well as labor and energy inflation.
For the fiscal year to February 28 Boohoo reported a pretax loss of GBP90.7 million ($113.6 million) compared with a profit of GBP7.8 million in the prior-year period.
The company's adjusted pretax loss was GBP1.6 million compared with an adjusted profit of GBP82.5 million the prior year.
Revenue fell to GBP1.77 billion from GBP1.98 billion the previous year.
For fiscal 2024, the company expects revenue to be flat or fall by up to 5%, with an increased emphasis on driving profitable sales. Adjusted earnings are expected to improve on-year, with Boohoo anticipating adjusted-earnings growth of 6%-8% in the medium term. In the first half, revenues are projected to decline by 10% to 15%. However, in the second half of the year, Boohoo expects to return to revenue growth.
"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," said CEO John Lyttle.
Boohoo's cash performance has been strong despite its setbacks, beating estimates and contrasting with peers, according to Jefferies analysts, noting that it was encouraging that the management team is forecasting a return to top-line growth in the second half of the fiscal year.
Boohoo shares have risen by 8.5% this year compared to a 22% drop for competitor Asos (LON:ASOS).
--This article was written with the assistance of AI
Related Articles
Boohoo's fiscal struggles continue, but CEO remains optimistic
Eneti Inc. Announces A Contract Award for Seajacks
Ceragon Networks Enters Multi-Year $4.2M Contract with City of Cincinnati
