Boohoo has posted a fall in revenue and profits in the six months to August 31, but said it is working on “improved profitability and getting back to growth”.

Group revenue at the fashion giant fell 17% to £729.1m, while profit declined 16% to £398.2m.

UK revenues fell 19%, which Boohoo said reflected the “impact of the macro environment on consumer demand”. Adjusted EBITDA declined 12% to £31.3m.

The group said it has made “substantial progress” in the last six months and that the 10% revenue decline in core brands is “consistent with prior guidance” for group revenues to decline by 10% to 15%.

Boohoo’s focus on investing for growth included its US distribution centre launch. It identified more than £125m of annualised cost savings to be delivered across 2024 and 2025.

The group expects revenues for the year ending February 28, 2024, to decline by between 12% and 17% due to “slower volume recovery than anticipated” and the “continued targeting of more profitable sales within our labels”.

Adjusted EBITDA is expected to be between £58m and £70m while the board remains confident in “rebuilding profitability over the medium term” through continued investment in product, price and proposition, volume growth, international expansion, unlocking cost deflation, and cost control.

Boohoo 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 £125 million 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.”