Boohoo Group, Half Year Results, Tuesday 3 October29 Sep 2023 11:59
Aarin Chiekrie, equity analyst, Hargreaves Lansdown: “Boohoo [LON:BOO] was having a tough time in the last update, with full-year revenue down 13% to £1.8bn ignoring exchange rates.
Sales declined across all regions, most notably falling at double-digit rates in the USA, which is seen as the group’s route to major growth.
Investors are looking forward to hearing whether Boohoo’s managed to stem the bleeding in next week’s half-year results, as well as how and when the group plans to return to growth.
With revenue expected to decline between 10-15% in the first half, Boohoo’s going to have to streamline its operations if it wants to keep full-year profit targets on track.
Falling goods cost inflation and much lower shipping costs should provide a slight tailwind too, easing some of the pressure on margins.
A small net cash position at the last count means there’s no immediate cash crunch and gives some wiggle room to turn things around.
But, if active customer numbers continue falling, it’ll be very hard to drive profits in the right direction again.”