Boohoo profits halve in FY22

Boohoo has seen its profits fall by 49% to £63.3m in 2022, with revenues falling to £1.8bn, down by 11% against last year, though up by 3% on 2020.

Over the year, UK revenues were down by 9% against the 2021 but were up by 61% against 2020, which the retailer said demonstrated “significant” market share gains over a three-year period.

Despite the profit hit, the group said it is now in a “leaner, lighter, faster” inventory position, with inventory falling by 36% in FY22.

It added that it had seen the successful delivery of automation in Sheffield, while “substantial” progress has been made ahead of its phased launch of a US distribution centre later this year.

Looking ahead, the group said its medium term adjusted EBITDA margin expectation is between 6% and 8%, and getting back to double digit revenue growth “through scale, unlocking cost deflation, and overhead efficiencies”.

CEO John Lyttle said: “Over the last three years, the Group has achieved significant market share gains. Looking ahead, we are investing for the future growth of this business with automation, local fulfilment capacity in the US and building global brand awareness. We will deliver sustainable returns on these investments. 

“We will continue to give our customers the latest trends, outstanding value and a great experience. Our confidence in the medium-term prospects for the group remain unchanged, and as we execute on our key priorities we see a clear path to improved profitability and getting back to double digit revenue growth.”