UK retailer Boohoo's revenue declined 8% in Q1 FY23

As expected, gross demand growth remained positive against tough comparatives, rose by 9 per cent year-on-year, with net sales impacted by the ongoing normalisation of returns due to product mix change, the company said in a press release.

UK sales improved month-on-month in the period and returned to net sales growth in May. Underlying gross demand remained strong at 2 per cent as the leading proposition continues to resonate with customers.

“I am pleased with the progress we are making towards our strategic priorities, which is already having a meaningful impact operationally within the business. We have seen promising signs from the group’s sales performance in the UK, which has improved month-on-month in the period and we are looking ahead towards our key summer trading season as holidays ramp up and customers look to the latest fashion from across our brands. Looking forward, we will continue to focus on optimising both our financial and operational performance to ensure the business is well placed to take advantage of future growth opportunities,” John Lyttle, CEO, said.

The group’s outlook for the year ending February 28, 2023 remains unchanged. Revenue growth for FY23 is expected to be low-single digits, with a return to growth in Q2 and growth rates improving in the second half of the year as the Group annualises high returns rates and normalising consumer demand. Adjusted EBITDA margins are expected to be between 4 per cent and 7 per cent, in line with prior guidance, as the group continues to be affected by pandemic-related and inflationary factors that negatively impact costs within its supply chain and international competitive proposition, offset to some extent by the financial benefits from strategic priorities and leveraging of overheads.

Fibre2Fashion News Desk (RR)