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Boohoo tumbles on sales guidance reversal

Company chasing profits through back-end streamlining but customers are not flocking back
October 3, 2023
  • Second-half sales growth forecast reversed
  • Cost cuts making a difference, says management

Fast-fashion retailer Boohoo (BOO) wants to get off the clearance rack. To do this, it is working on profitability and cutting the inventory held around the world. Management has stripped back some costs but better margins will do little if buying is slowing down. This is what investors saw at the release of Boohoo’s results for the six months to 31 August. The headline was that full-year sales are now forecast to fall 12-17 per cent, “given the slower volume recovery than previously anticipated”.  First-half revenue was down 17 per cent. 

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