Boohoo returns to profit as cost-cutting drives turnaround

Summarised from 3 outlets · Updated 23 Oct, 08:20 · Archive

Fast fashion firm Boohoo has returned to pre-tax profit for the first time since 2021, posting £28m profit in six months.

Fast fashion retailer Boohoo has returned to pre-tax profit for the first time since 2021, posting £28m profit in the six months to end August, reversing a loss of £18m in the same period last year.

The London-listed group, which owns Debenhams, Karen Millen and Pretty Little Thing, has pursued aggressive cost-cutting to drive the turnaround. It sold its Sheffield warehouse to rival Primark for £90m and offloaded the Nasty Gal brand for £12m (£16m in US dollars). Revenue edged down three per cent to £410m, though Debenhams brand saw 14 per cent revenue growth. Pretty Little Thing and Boohoo combined saw one per cent growth, while BoohooMan sales slipped by more than a quarter to £80m.

Chief executive Dan Finley said the turnaround was "significantly ahead of schedule". The company targets £100m pre-tax profit and "significant cash" generation in the medium term, with bosses expecting additional material cost reductions in the next financial year.

How it is being reported

• Boohoo owner Debenhams hails return to profit for first time in five yearsDebenhams Group has been taking steps to reduce its cost base by selling off parts of the business.Independent Business · 23 Oct, 07:58
• Boohoo owner Debenhams hails return to profit for first time in five yearsDebenhams Group has been taking steps to reduce its cost base by selling off parts of the business.Evening Standard · 23 Oct, 07:58
• Boohoo eyes £100m profit as online seller revives fortunesFast fashion firm Boohoo has set its sights on a £100m profit after emerging from years of consecutive losses. The London-listed firm, which owns Debenhams, Karen Millen and Pretty Little Thing, said its turnaround plans are “significantly ahead” of schedule after producing its first pre-tax profit since 2021. Boohoo has endured a rocky few years, [...]City AM · 23 Oct, 07:43

In this story: Boohoo · Debenhams · Karen Millen · Pretty Little Thing · Dan Finley · Primark · Nasty Gal · BoohooMan

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