Major cuts planned at fashion giant Boohoo as sales slashed by over £150m
03.10.2023 - 08:11
/ manchestereveningnews.co.uk
Fashion giant Boohoo is planning to make major cuts to its business after its sales were slashed by more than £150m during the first half of its financial year. The Manchester-headquartered group has identified £125m of cost savings which it will make during the rest of this year and into 2024.
The listed group has posted pre-tax losses of £26.4m for the six months to the end of August 2023, compared to losses of £15.2m during the same period in 2022. Boohoo's revenue also fell from £882.4m to £729.1m over the same time.
In a statement issued to the London Stock Exchange, the group said it has identified more than £125m of annualised savings across the costs of goods, its supply chain and overheads. Boohoo has also warned that its full-year sales are set to fall by between 12% and 17%.
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Chief executive John Lyttle said: "Over the first half we have made substantial progress across key projects and initiatives, including the launch of our US distribution centre. We have seen significant improvements in sourcing lead times and invested in pricing to reinforce our value credentials.
"We have identified more than £125m of annualised cost savings that support our investment programme. Our confidence in the medium-term prospects for the group remains unchanged as we execute on our key priorities where we see a clear path to improved profitability and getting back to growth."
On its outlook, Boohoo added: "The group's focus remains on executing its back to growth strategy through disciplined investments across product, price and proposition. Given the slower
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