Boohoo Group GMV was down 13 percent to 1,809 million pounds for the fiscal year 2024, as group performance continued to be impacted by a difficult macroeconomic environment.
The company said that revenue for the year of 1,461 million pounds, declined 17 percent reflecting increased focus on profitability and difficult market conditions.
Boohoo sees improvement in H2 GMV
The company however witnessed a positive trend in the GMV performance of core brands including Boohoo, BoohooMan, PrettyLittleThing, Karen Millen and Debenhams with sales decline improving from negative 9 percent in the first half to negative 4 percent in the second half of FY24.
Commenting on the annual trading update, John Lyttle, Boohoo Group CEO, said: “Despite difficult market conditions, caused by high levels of inflation and weakened consumer demand, we made continued progress in the year. I am particularly encouraged with the ongoing trend of improved performance in our core brands.”
Review of Boohoo’s full year results
Gross margin for the year was 51.8 percent, up 120 bps, adjusted EBITDA margin improved to 4 percent, up 40 bps, while adjusted EBITDA of 58.7 million pounds declined 7 percent.
The company’s UK market, accounting for 63 percent of revenue, reported a decline of 16 percent to 921.5 million pounds. USA revenues declined 18 percent and revenue in the rest of Europe decreased by 20 percent to 165.8 million pounds. Revenue in the rest of the world decreased by 30 percent to 74.6 million pounds.
The company is now targeting GMV growth, as well as continued improvements in adjusted EBITDA margin. Boohoo is confident in its 6 to 8 percent medium term EBITDA margin target. The group expects to generate positive free cash flow in FY25.