Boohoo has announced a 10 per cent drop in sales has warned that revenue will likely continue to decline for the rest of the year.

The online fashion retailer said sales had fallen to £882.4 million during the six months to 31 August. Gross margins dropped from around 55 per cent during the comparable six-month period a year ago to roughly 53 per cent.

Boohoo said that inflation had contributed to higher costs. Adjusted EBITDA was down 58 per cent to £35.5 million, resulting in a revenue of just four percent compared to nearly nine per cent a year ago.

In the UK market, sales were down by four per cent. Boohoo said that customer demand had been impacted by the cost-of-living crisis.

Commenting on the figures, Boohoo’s group chief executive John Lyttle said:

“Performance in the first half was impacted by a more challenging economic backdrop weighing on consumer demand. Over the last three years the Group has seen significant gains in market share achieved across our brand portfolio, particularly in the UK where our price, product and proposition resonate strongly with customers.”

He added: “We have a clear plan in place to improve future profitability and financial performance through self-help via the delivery of key projects, which will stand us in good stead as macro-economic headwinds ease.”

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