boohoo Group PLC on Wednesday reported a wider loss in its recent financial year, despite a focus on improving profitability that reduced revenue.

boohoo shares were down 3.8% to 33.88 pence early Wednesday in London. The stock is down 21% over the past 12 months and by nearly 90% over the past three years.

The Manchester, England-based fast fashion retailer reported a pretax loss of £159.9 million in the financial year that ended February 29, widened from £90.7 million the year before, as revenue fell by 17% to £1.46 billion from £1.77 billion.

Gross merchandise value fell by a less-steep 13% to £1.81 billion from £2.09 billion, which boohoo attributed to a ‘difficult macro-economic environment’. Revenue was further hurt the growth of boohoo’s marketplace, which has a commission-only revenue model.

boohoo said revenue also was hurt by its focus on profitability. Adjusted earnings before interest, tax, depreciation and amortisation was £58.6 million in financial 2024, down 7.4% from £63.3 million in financial 2023. This gave an adjusted Ebitda margin of 4.0%, improved by 40 basis points.

Revenue declines were across all of boohoo’s sales regions. It fell by 16% in the UK, boohoo’s largest market by far. It was down 18% in the US, 20% in the Rest of Europe, and 30% in the Rest of World.

boohoo said its annual results were in line with market expectations. With its investment cycle complete, it is now positioned for growth, it said. In the recent year, boohoo made £64.8 million in capital expenditure to automate its facility in Sheffield, England and on a US distribution centre.

Looking ahead to financial 2025, boohoo said it is targeting GMV growth and improvement to adjusted Ebitda margin, on its way to its medium-term target for a margin of 6% to 8%. To achieve this, it is on track for £125 million in annualised cost savings in the current year.

boohoo also expects to generate positive free cash flow in financial 2025.

‘The group is now well positioned to return to growth, and we are focused on ensuring that growth is both sustainable and profitable,’ said Chief Executive Officer John Lyttle.

Guy Lawson-Johns, an equity analyst at Hargreaves Lansdown, commented: ‘Boohoo’s full-year results were a painful read for investors. Revenue declined at high double-digit rates across all regions, including an 18% in the US, which is seen as the group’s pathway to major growth.

‘For now, it remains a struggling company with a tarnished reputation, reflected in the group’s valuation, which has come down significantly over the last few years.’

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