Boohoo Group PLCs interim report for the six months ended 31 August 2024 shows a challenging period for the company. The report highlights a decline in Gross Merchandise Value (GMV) pre-returns of 7.3% compared to the same period last year, resulting in a revenue decrease of 15%. The company attributes these declines to difficult market conditions and weak consumer demand. Despite these challenges, the groups Debenhams and Karen Millen brands performed well, with significant growth in the external marketplace and beauty business. The group has also made progress in cost reduction, with operating costs down £128 million compared to the same period last year. The company has appointed a new CEO, Dan Finley, who believes the group is fundamentally undervalued and has significant opportunities to create value for shareholders. Boohoo Group PLC has also secured a new £222 million debt refinancing and plans to host a capital markets day in Q1 2025. The companys net debt has increased to £143.1 million, and they expect a higher GMV and stronger adjusted <mark style="background-color:yellow">EBIT</mark>DA performance in the second half of the financial year.
| Financial Metrics | 6 months to 31 August 2024 | 6 months to 31 August 2023 | Change |
|---|---|---|---|
| Gross Merchandise Value (GMV) Pre Returns | £1,176.9 million | £1,270.1 million | (7.3%) |
| GMV Post Returns | £807.8 million | £861.4 million | (6.2%) |
| Revenue | £619.8 million | £729.1 million | (15.0%) |
| Gross profit | £314.4 million | £389.2 million | (19.2%) |
| Gross margin | 50.7% | 53.4% | (270)bps |
| Operating costs | £294.3 million | £358.0 million | (17.8%) |
| Adjusted EBITDA | £20.8 million | £31.3 million | (10.5) |
| Adjusted EBIT | (£18.3) million | (£3.9) million | (14.4) |
| Adjusted loss before tax | (£27.4) million | (£9.1) million | (18.3) |
| Adjusted diluted loss per share | (1.96)p | (0.91)p | (1.05)p |
| Net debt | (£143.1) million | (£35.0) million | (108.1) |
| Capital expenditure | £14.9 million | £36.3 million | (21.4) |