By Michael Susin
Boohoo Group has downgraded its fiscal 2024 revenue targets on slower-than-expected sales volume recovery, and reported a widened pretax loss for the first half.
The London-listed online fashion retailer said Tuesday that it expects revenue for the year ending Feb. 28 to decline by 12% to 17%, compared with previous guidance of flat growth or a fall of up to 5%.
Despite the revenue slip, the company continues to expect adjusted earnings before interest, taxes, depreciation and amortization–which strips out exceptional and other one-off items–margins to be between 4% and 4.5%, given the progress made on gross margin and cost control.
Boohoo backed its adjusted Ebitda target of between 58 million pounds to 70 million pounds ($70.1 million and $84.6 million), while capital expenditure is expected to be around GBP75 million.
The company also reported a pretax loss for the six months ended Aug. 31 of GBP26.4 million, compared with a loss of GBP15.2 million for the same period a year ago.
Revenue fell to GBP729.1 million from GBP882.4 million, with U.K. sales down 19% and international sales down 15%.
The drop was driven by a 10% revenue fall in core brands, consistent with guidance as the group targeted more profitable sales.
Boohoo added that inventory significantly reduced, down GBP94 million, or 35%, on year.
“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,” Chief Executive John Lyttle said.
Write to Michael Susin at michael.susin@wsj.com