Clothing & Shoes

Boohoo profits sink 94% to £7.8m

Yet sales rose 14% from 2021 to £1.9b, up 61% on pre-pandemic levels

Boohoo has announced its profit before tax sunk 94% to £7.8m in 2022, compared to £124.7m in 2021, according to its final results for the year ended 28 February 2022.

The group said this is due to “lower growth” than anticipated and a “significant” increase in logistics costs.

The group also reported £125m of Adjusted EBITDA, down 28% from last year’s figure, and “broadly flat” compared with two years ago.

Yet sales rose 14% from 2021 to £1.9b, up 61% on pre-pandemic levels. Boohoo said it has also “significantly” increased its market share in the UK and US since 2020.

The group added strong revenue expansion in the UK of 27%, with product, price and proposition resonating with customers.

However international sales fell 3% over the year.

John Lyttle, group CEO, said: “Over the past two years, we have significantly increased market share in our core geographies of the UK and the US, and we have grown active customer numbers by 43% across the group to 20 million.

“Our focus over the past two years has been on investing to build a strong platform, with the right infrastructure, supported by increased capacity to better serve our customers.”

He added: “In the year ahead we are focussed on optimising our operations through increasing flexibility within our supply chain, landing key efficiency projects and progressing strategic initiatives such as wholesale and our US distribution centre.

“This will ensure that the group is well-positioned to rebound strongly as pandemic-related headwinds ease.”

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