Boohoo has posted a drop in revenue in its year-end results, but said it was making progress on a return to growth in the second half of next year.
Sales at the fashion etailer dipped to £1.77bn, 11% down on last year, while UK revenues were down 9% against last year.
The pressure of the cost-of-living crisis and increased competition saw profits halved, with adjusted EBITDA at £63.3m, down 49% for the period, with an adjusted EBITDA margin of 3.6%.
Boohoo, which owns brands including PrettyLittleThing, BoohooMan and NastyGal, said that despite the drop it had made “significant progress” in its priorities for getting back to growth.
The group said its work on a phased launch of a US distribution service has driven a “step change in customer proposition” and it had a “leaner, lighter, faster inventory proposition” with stock down 36% year on year.
Boohoo said it had invested £91m in “building infrastructure for future growth”, including a Sheffield automation centre that had driven “significant efficiencies and capacity”.
The etailer said it had made significant progress on its market share gains over the past few years, with overall sales up 43% compared with 2020 and UK sales up 61%.
Boohoo chief executive John Lyttle said: “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. 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 remain 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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