Boohoo eyes £100m profit as online seller revives fortunes
Fast 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, [...]
Fast fashion retailer Boohoo aims for £100 million profit amid revival. The London-listed business, which holds Debenhams, Karen Millen, and Pretty Little Thing, announced a pre-tax profit for the first time since 2021. Boohoo's turnaround is "significantly ahead" of schedule as it embraces cost cuts and an online platform for third-party brands.
The company's profit jumped to £28 million in the six months to August, reversing last year's £18 million loss and a three percent drop in revenue to £410 million. Boohoo targets a £100 million pre-tax profit and substantial cash flow in the "medium term". Debenhams' revenue grew 14 percent to £364 million, while Pretty Little Thing and Boohoo's sales increased by one percent to £369 million.
The merger of management teams behind Boohoo and Pretty Little Thing has shown positive effects in the young fashion sector. Boohoo's CEO Dan Finley has sold non-essential assets, including a Sheffield warehouse to Primark and Nasty Gal for £12 million. Finley stated that the group's debt is expected to be negligible by year-end, surpassing initial guidance from the beginning of the year.
Analysts at Panmure Liberum lauded Boohoo's "breathtaking" turnaround, predicting a near-£50 million pre-tax profit by the end of the decade.
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