LONDON, May 8 — British fast-fashion retailer Boohoo, whose brands include Karen Millen and PrettyLittleThing, reported today a near-doubling of annual net losses caused by high inflation and weak demand.
The online retailer announced a loss after tax of £140.9 million (US$176 million) in its financial year to the end of February.
That compared with a net loss of £75.6 million in 2022/23, Boohoo said in a statement.
Chief executive John Lyttle said the group had experienced “difficult market conditions, caused by high levels of inflation and weakened consumer demand”.
Boohoo sales slid 17 per cent to around £1.5 billion year-on-year amid heavy competition from Chinese online retailer Shein and as consumers return to physical stores following the Covid pandemic.
“Boohoo’s full-year results were a painful read for investors,” noted Guy Lawson-Johns, equity analyst at Hargreaves Lansdown.
“Revenue declined at high double-digit rates across all regions, including... in the US, which is seen as the group’s pathway to major growth.”
Boohoo shares dropped 1.2 per cent to 34.81 pence in London afternoon trading.
AJ Bell investment director Russ Mould added that “the disposable nature of some of its products is at odds with a commitment to green issues, which appears to be particularly important to its core demographic of teenagers and young adults”. — AFP
