Kavango Resources (AIM: KAV) has raised £6m and quickly invested in copper, silver and gold exploration. CEO, Ben Turney explains the strategy at our Natural Resources Webinar, 5th December at 6 pm. Register here.

Less Ads, More Data, More Tools Register for FREE

TOP NEWS: boohoo slashes revenue outlook as demand suffers

Tue, 03rd Oct 2023 08:45

(Alliance News) - boohoo Group PLC posted a wider loss and a revenue fall in its first-half, but it said on Tuesday that it believes it has a "clear path to improved profitability and getting back to growth".

The AIM listing cut annual revenue guidance, however.

The stock tumbled 8.1% to 29.03 pence each in London on Tuesday morning.

For the six months ended August 31, revenue fell 17% to GBP729.1 million from GBP882.4 million a year prior. The fast fashion firm's pretax loss stretched to GBP26.4 million from GBP15.2 million.

boohoo said consumer demand was hurt by tough economic conditions.

Chief Executive John Lyttle said: "Over the first half, we have made substantial progress across key projects and initiatives, including the launch of our US distribution centre. We have seen significant improvements in sourcing lead times and invested in pricing to reinforce our value credentials. We have identified more than GBP125 million of annualised cost savings that support our investment programme. Our confidence in the medium-term prospects for the group remains unchanged as we execute on our key priorities where we see a clear path to improved profitability and getting back to growth."

Looking to the full-year, boohoo now predicts its revenue will decline between 12% and 17% from GBP1.77 billion achieved the year prior. This is due to the "slower volume recovery than previously anticipated" and the company plotting "more profitable sales within our labels". Its previous revenue forecast ranged from a flat outcome to a 5% decline.

boohoo's adjusted earnings before interest, tax, depreciation and amortisation margin is still expected to land between 4% and 4.5%. Its first-half adjusted Ebitda margin improved to 4.3% from 4.0% a year earlier.

boohoo added: "The board's confidence remains unchanged in rebuilding profitability over the medium term, generating a 6% to 8% adjusted Ebitda margin while getting back to growth through: continued investment in product, price and proposition, volume growth, international expansion, unlocking cost deflation; and cost control."

By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

Copyright 2023 Alliance News Ltd. All Rights Reserved.

Related Shares

More News
Today 15:46

London close: Stocks finish weaker as commodities drag

(Sharecast News) - London's equity markets closed lower on Monday as investors kept a watchful eye on upcoming US jobs data, while gold prices surged ...

Today 07:22

Frasers takes Boohoo stake to over 17pc

(Sharecast News) - Mike Ashley's Frasers Group has increased its stake in the online fast fashion retailer Boohoo Group, it announced on Monday.

6 Nov 2023 16:30

Boohoo defends supply practises after BBC allegations

(Sharecast News) - Online fashion retailer Boohoo responded to scrutiny over how it treats suppliers on Monday afternoon after a BBC investigation rev...

6 Nov 2023 10:38

PRESS: Boohoo breaks promises over treatment of suppliers — BBC

(Alliance News) - boohoo Group PLC has broken promises to make its clothes fairly and allegedly pressured suppliers to drive prices down, according to...

26 Oct 2023 08:08

Boohoo facing potential investor lawsuit - report

(Sharecast News) - Boohoo Group is facing potential legal action from investors after allegations of illegal working conditions hit the fast fashion r...

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.