LONDON, Jan 19 (Reuters) – British online fashion retailer Boohoo (BOOH.L) said revenue fell 11% in its key Christmas trading period, hurt by delivery disruption and tough comparatives, as it broadly stuck to annual guidance. For its financial year which ends on Feb. 28, Boohoo, which sells clothing, shoes and accessories aimed at 16 to 40-year old’s, said adjusted core earnings would be in line with market expectations.
Its forecast for a 12% decline in annual revenue was slightly behind the downgraded guidance for a 10% drop it gave in September.
The sales fall during the Christmas period, the four months to the end of December, was partly due to longer delivery times, said Boohoo, and its UK market, where sales were also down 11%, was against a tough comparative period, as last year, COVID-19 meant shoppers favored online orders.
The weaker trading, which echoed a sales fall at online-only peer ASOS (ASOS.L), is in contrast to a stronger performance from more traditional retailers such as Next, Marks & Spencer and JD Sports, which posted sales growth despite Britain being in the midst of a cost-of-living crisis.
Those retailers noted that store sales benefited from delivery problems in Britain, where postal strikes, made people worry about orders turning up in time.
Looking ahead, Boohoo said that while the demand outlook was uncertain, it expected cost inflation to moderate in the second half of 2023, and its focus on reducing inventory levels and cost control would stand it in good stead for future growth.
Our Standards: The Thomson Reuters Trust Principles.
Serta Simmons Bedding LLC, which accounts for nearly one-fifth of U.S. bedding sales, has filed for bankruptcy protection in an effort to eliminate most of its debt, as the slowing economy and rising interest rates crimp consumer demand.
Reuters, the news and media division of Thomson Reuters, is the world’s largest multimedia news provider, reaching billions of people worldwide every day. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world’s media organizations, industry events and directly to consumers.
Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology.
The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs.
The industry leader for online information for tax, accounting and finance professionals.
Access unmatched financial data, news and content in a highly-customized workflow experience on desktop, web and mobile.
Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts.
Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks.
All quotes delayed a minimum of 15 minutes. See here for a complete list of exchanges and delays.
© 2023 Reuters. All rights reserved