Boohoo has plummeted to a pre-tax loss as shoppers return to physical stores post-pandemic.
In the year ended 28 February 2023, the online retailer posted a loss of £90 million compared to a pre-tax profit of £7.8 million in the same period the previous year.
Revenues dipped by 11% in the period from £1.98 billion to £1.77 billion, however, this figure is still ahead of the £1.23 billion the fashion retailer reported in 2020.
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The group also reported a 9% drop in sales against last year, with international revenues falling by 13%, but remained up on 2020 figures.
According to the retailer, it had been impacted by freight and logistics inflation related to the Covid-19 pandemic, alongside rising labour and energy costs. This comes as the group hired 840 new employees in the period, bringing its headcount from 5,350 to 6,190.
“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,” Boohoo group CEO John Lyttle said.
“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 remains 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.
“Our Boohoo family has continued to deliver for our customers and the business and I want to thank them for all of their hard work and dedication.”
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