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Boohoo has seen revenues plunge by 17% to £729.1m in the first half of the year, after a slower than expected recovery in its sales by volume.
Over the period, UK revenues were down by 19% while International sales fell by 15%, as the number of orders fell by 18% in total.
The retailer also fell to a pre-tax loss of £9.1m, down from a profit of £6.2m the prior year.
Following the slower than anticipated volume recovery, FY24 revenues are now expected to fall by between 12% and 17%. The group also attributed this to the continued targeting of more profitable sales within its labels over the period.
Nonetheless, the group said it has identified more than £125m of cost savings across cost of goods, supply chain and overheads, to be delivered across FY24 and FY25 as part of a “disciplined” reinvestment programme
In addition, it noted that gross margin strengthened over the period, despite significant investments into reducing lead times in the supply chain and into price reductions for customers.
John Lyttle, group CEO, 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 £125m 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.”
