Boohoo Group has reported an 8 percent year-over-year drop in revenue to 445.7 million pounds in the first quarter of the year, which it said was in line with expectations and against a strong prior year performance linked to lockdowns.
Revenues increased 75 percent over the three-year pre-pandemic period.
Commenting on the quarterly performance, Boohoo CEO John Lyttle said: “We have seen promising signs from the group’s sales performance in the UK, which has improved month-on-month in the period and we are looking ahead towards our key summer trading season as holidays ramp up and customers look to the latest fashion from across our brands.”
Review of Boohoo’s results
The group said that gross demand growth remained positive against tough comparatives, up 9 percent in the quarter. UK sales improved month-on-month in the period and returned to net sales growth in May. Underlying gross demand was up 21 percent.
International performance continued to be impacted by increased delivery times, although wholesale drove growth in ROW and contributed to ROE’s performance.
Gross margin for the three months of 52.8 percent was down 220bps but rose 240bps against the second half of the previous financial year, and improved through the quarter.
The group expects revenue growth for FY23 to be in the low-single digits, with a return to growth in Q2 and growth rates improving in the second half of the year.
Adjusted EBITDA margins are expected to be between 4 percent and 7 percent as the group continues to be affected by pandemic-related and inflationary factors that negatively impact costs within its supply chain and international competitive proposition.
It expects this to be offset to some extent by the financial benefits from the company’s strategic priorities and leveraging of overheads.