Boohoo has blamed rising inflation and the cost-of-living crisis as major factors impacting its performance in FY ended 29 February 2024.
Turnover had fallen by 17 per cent to £1.561bn with gross merchandise value down by 13 per cent to £1.808bn. It had increased its gross margin to 51.8 per cent which is up 120bps vs 2023 reflecting the growth of marketplace and the impact of decreases in the costs of freight and raw materials. Operating costs were down by 16 per cent to £699 million.
Inventory had increased by £29.9 million largely due to stock investment in its US distribution centre. Capital expenditure of £64.8 million was directed to infrastructure to support growth, including both its Sheffield automation and the US facility. Both projects were, it says, delivered on time and on budget.
John Lyttle, CEO, said: “We have a highly loyal customer base, and throughout the year, we remained focused on maintaining our position as an industry-leading, fashion-forward group with brands that deliver on-trend, high-quality fashion at great value prices. The strength and diversity across our core brands mean the Group is well-placed to serve a global customer base across fashion, beauty and home.
Despite difficult market conditions, caused by high levels of inflation and weaked consumer demand, we made continued progress in the year. I am particularly encouraged by with the ongoing trend of improved performance in our core brands which saw GMV down 9 per cent in H124 and down just 4 per cent in H224 demonstrating increasing momentum and validating our strategy to focus on these brands which are much loved by our customer base.”
The group’s core brands are boohoo, boohooMAN, PrettyLittleThing, Karen Millen, and Debenhams External Marketplace.
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